Top 4 Crisis Defender Dividend Stocks (抗压存股)

Global stock markets experienced mini dotcom bubble with over 30%-50% major correction in technology stocks, especially in US Nasdaq and Hong Kong. Both long term investors and short term traders are worried of high inflation over 8%, interest rate hike (may exceed 3% in 1 year), Russia-Ukraine War (higher commodity prices) which contribute to declining stock prices. A potential black swan may spread the fears in technology stocks to most sectors, resulting in a global financial crisis.

Instead of worrying about uncertain markets, a smart investor and trader may consider strong dividend giant stocks with protection by defensive sector business, a natural way to hedge against high inflation with interest rate hike while collecting growing passive incomes in a steady way.

In recent 13th Ein55 Charity Course on Global Dividend Stocks, we have raised fund of $21,700 for Tzu Chi Singapore to help needy families in Singapore. Under the spirit of charity, Dr Tee decides to share 4 defensive dividend stocks in 4 countries of 3 defensive sectors (banking & finance, utilities, oil & gas) with readers as defenders in current bearish stock markets (read each details in this article to fully understand on how to position in these giant stocks):

1) Singapore Dividend Bank Stock – OCBC Bank (SGX: O39)

2) Malaysia Dividend Bank Stock – Public Bank (Bursa: 1295)

3) Hong Kong Dividend Utility Stock – CK Infrastructure / CKI (HKEx: 1038)

4) US Dividend Oil & Gas Stock – Enterprise Products Partners (NYSE: EPD)

The best time to invest in global dividend giant stocks is always during global stock crisis (eg. Year 2020-2021 during pandemic, 2008—2009 during subprime crisis, etc), not only able to maximize the dividend yield (due to lower entry share price), also could have higher potential of capital gains (when market cycle moves from fear in low optimism to greed in high optimism). Dividend stock investing is not based on stock strategy (Buy & Hold for dividends) alone, may be integrated with cyclic investing (Buy Low Sell High), growth investing (Buy & Hold for capital gains), swing / momentum trading (Buy & Hold for short term / medium term gains), defensive investing and other Ein55 strategies.

However, not all the high dividend yield stocks (potential value trap) are suitable for dividend investing. A growing business in the past may not be sustainable during COVID-19 period and a dividend stock may not able to continue the payment of dividend. Similarly, even a dividend stock may have strong and sustainable business but if share prices is bearish due to emotional stock market or declining sector, it may not be a good choice for investors to Buy Low (prices may get lower in short term), integration with trading or alignment with promising sectors would help for a smooth entry.

Fundamental Analysis alone is not sufficient, a low PB or low PE or high dividend yield stock may be a value trap as this may be the result of lower share price with weakening businesses. Therefore, deeper analysis is required with LOFTP (Level, Optimism, Fundamental, Technical, Personal Analysis) Strategies. 

Let’s learn these 4 giant dividend stocks from 3 promising sectors (banks, utilities, oil & gas) as defenders in 4 countries (Singapore, Malaysia, Hong Kong and US), understanding the business nature, investment clock and unique strategy.

1) Singapore Dividend Bank Stock – OCBC Bank (SGX: O39)

With rising interest rates globally, bank sector would earn more in interest income (mainly through higher net interest margin, NIM). With accelerated pandemic recovery, banks would also make more profits in non-interest incomes (eg. insurance, credit card, investment, fund management).

So, giant bank stocks usually are good choices for dividend stocks as defenders during bearish market but they could change position as a striker with higher capital gains when stock market is bullish.

OCBC has nearly 100 years of business with merging and acquisition of many banks, supported by major shareholder, Lee Family, as well as an important subsidiary (contributing to about 30% earnings of OCBC), Great Eastern (SGX: G07), an insurance giant stock which has over 100 years of proven operations. Both giant stocks have experienced numerous stock market “crisis” over the past decades, survival-of-the-fittest principle is fully demonstrated, not comparable by any new rising star or promising IPO stock with limited history.

OCBC has strong business performance, after 60% dividend cap during FY2020 is lifted, dividend yield is back to 4.5%, highest among the 3 major Singapore Banks (OCBC, DBS, UOB), partly due to more undervalue in share prices.  Over the past 10 years, OCBC has increased dividends payment by 2.5X times, assuming similar performance in the next 10 years, dividend yield could increase to about 10% for long term investors.

OCBC is still at moderate low Ein55 Optimism (<50%) but recovering well from low in pandemic, aiming for Ein55 intrinsic value of about $13/share (about 8% potential upside in medium term) or over $15/share when market emotion may be greedy again. The stock is well balanced, suitable for dividend investing (Buy & Hold for dividend), growth investing (Buy & Hold for capital gains), but not for cyclic investing (near to fair price) nor trading when trend is still sideways.

OCBC Bank is an all-rounded stock but an investor or trader may need diversification over a portfolio of 10-20 giant stocks in 3 sectors of 3 countries, not to buy only 1 giant stock (concentration risk).


2) Malaysia Dividend Bank Stock – Public Bank (Bursa: 1295)

Similar as Singapore, Malaysia bank stocks also benefit from rising interest rates and reopening of economy, especially the international borders are widely opened to tourists.

Public Bank is one of a few remaining private banks (another is Hong Leong Bank, Bursa: 5819) in Malaysia with strong growing businesses. Public Bank is very prudent in expenses, staff cost is one of the lowest among the peers. It also has an insurance giant stock (LPI, Bursa: 8621) as subsidiary.

Relative to OCBC and peers in Singapore, Public Bank is moderate in dividend payment (about 3.3% dividend based on current share prices) but stronger in growth and high cyclic potential due to share prices heavily discounted over the past few years with lagging Malaysia economy.

Public Bank is still at moderate low Ein55 Optimism (<50%) but recovering well from low in pandemic, aiming for Ein55 intrinsic value of about $6/share (about 30% potential upside in medium term). The stock is well balanced, suitable for dividend investing (Buy & Hold for dividend), growth investing (Buy & Hold for capital gains), cyclic investing (Buy Low Sell High) and even trading when price is back to uptrend in short term.

Public Bank is an all-rounded stock but an investor or trader may need diversification over a portfolio of 10-20 giant stocks in 3 sectors of 3 countries, not to buy only 1 giant stock (concentration risk).

3) Hong Kong Dividend Utility Stock – CK Infrastructure / CKI (HKEx: 1038)

Utilities sector has defensive business (eg. power or water supplies with fixed rates for several years), therefore able to generate consistent dividends, even during a bearish stock market.

CKI is under CKH (HKEX: 1), both are Hang Seng Index component stocks with major sponsor, Li Ka-shing, the richest person in Hong Kong.  CKI also owns Power Assets (HKEx: 6) and Hong Kong Electric, as well as global utilities businesses, contributing to dividend yield of 4.7% (based on current share prices), a defensive stock popular among Hong Kong investors, especially with bearish stock market driven by ATM (Alibaba / Tencent / Meituan) and other technology stocks.

CKI is still at low Ein55 Optimism (<25%) but recovering well from low in pandemic, aiming for Ein55 intrinsic value of about $80/share (about 60% potential upside in medium term). The stock is well balanced, suitable for dividend investing (Buy & Hold for dividend), growth investing (Buy & Hold for capital gains), cyclic investing (Buy Low Sell High) and even trading when price is back to uptrend in short term.

CKI is an all-rounded stock but an investor or trader may need diversification over a portfolio of 10-20 giant stocks in 3 sectors of 3 countries, not to buy only 1 giant stock (concentration risk).

4) US Dividend Oil & Gas Stock – Enterprise Products Partners (NYSE: EPD)

Oil & Gas sector usually has cyclic business but commodity prices at higher optimism are supporting the giant stocks in oil & gas with stronger business. EPD is a special oil & gas stock with defensive business in midstream sector on delivery of crude oil and natural gas.  The earnings and cashflows are stable as business based on future contracts, less sensitive to volatile oil & gas prices.

Russia-Ukraine war has pushed the commodity prices to new high while demand for delivery of oil & gas would be more. Even when one day oil price may fall to lower optimism, EPD could still generate passive incomes which dividend payment has been consistent over the past few decades, currently dividend yield is 6.9% (about 4.3% net dividend yield after over 38% withholding tax to US government).

EPD is under MLP business model which can maximize dividend without corporate level tax, paying dividend 4 times each year, behaving like a REIT (both are required to pay 90% incomes as dividends to shareholders).

EPD is still at moderate low Ein55 Optimism (<50%) but recovering well from low in pandemic, aiming for Ein55 intrinsic value of about $30/share (about 30% potential upside in medium term). The stock is well balanced, suitable for dividend investing (Buy & Hold for dividend), growth investing (Buy & Hold for capital gains), cyclic investing (Buy Low Sell High) and even trading when price is back to uptrend in short term.

EPD is an all-rounded stock but an investor or trader may need diversification over a portfolio of 10-20 giant stocks in 3 sectors of 3 countries, not to buy only 1 giant stock (concentration risk).

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There are over 2000 giant stocks in the world based on Dr Tee criteria, choice of 10 Dream Team giant stocks have to align with one’s unique personality, eg. for shorter term trading (eg. momentum or swing trading) or longer term investing (cyclic investing, undervalue investing or growth investing). Readers should not just “copy and paste” any stock (What to Buy, When to Buy/Sell) as successful action taking requires deeper consideration (LOFTP strategies – Level / Optimism / Fundamental / Technical / Personal Analysis) which you could learn further from Dr Tee Free 4-hr Webinar.

Drop by Dr Tee free 4hr webinar (learning at comfort of home with Zoom) to learn how to position in global giant stocks during COVID-19 stock crisis with 10 unique stock investing strategies, knowing What to Buy, When to Buy/Sell.

Zoom will be started 30 min before event, bonus talk (Q&A on any investment topics from readers) for early birds. There are many topics we will cover in this 4hr webinar, Dr Tee can have more time for Q&A if you could stay later after the webinar, you could ask on any global and local stocks including but not limited to 30 STI component stocks:

Ascendas Reit (SGX: A17U), CapitaLand (SGX: C31), CapitaLand Integrated Commercial Trust (SGX: C38U), City Development (SGX: C09), ComfortDelGro (SGX: C52), Dairy Farm International (SGX: D01), DBS Bank (SGX: D05), Frasers Logistics & Commercial Trust (SGX: BUOU), Genting Singapore (SGX: G13), Hongkong Land (SGX: H78), Jardine Cycle & Carriage (SGX: C07), Jardine Matheson Holdings JMH (SGX: J36), Keppel Corp (SGX: BN4), Keppel DC Reit (SGX: AJBU), Mapletree Commercial Trust (SGX: N2IU), Mapletree Industrial Trust (SGX: ME8U), Mapletree Logistics Trust (SGX: M44U), OCBC Bank (SGX: O39), SATS (SGX: S58), Sembcorp Industries (SGX: U96), Singapore Airlines (SGX: C6L), Singapore Exchange (SGX: S68), Singtel (SGX: Z74), ST Engineering (SGX: S63), Thai Beverage (SGX: Y92), UOB Bank (SGX: U11), UOL (SGX: U14), Venture Corporation (SGX: V03), Wilmar International (SGX: F34), YZJ Shipbldg SGD (SGX: BS6).

Dr Tee will cover over 20 case studies, Singapore giant stocks, eg. CapitaLand Integrated Commercial Trust (SGX: C38U), Singapore Exchange (SGX: S68), Keppel Corp (SGX: BN4), Top Glove (SGX: BVA), Jardine Matheson Holdings JMH (SGX: J36), Vicom (SGX: WJP) and many others, Malaysia giant stocks, Hong Kong giant stocks and US giant stocks, both long term investing and short term trading.

There are limited tickets left for this 4hr free webinar, please ensure 100% you could join when register: www.ein55.com

View quick preview video below, Dr Tee will introduce 10 key stock investment strategies (股票投资十招) to be learned in 4hr free stock webinar:

Register Here (Dr Tee Free 4hr Stock Webinar):  www.ein55.com

Dr Tee Stock Webinar

6 Singapore Banking and Finance Giant Stocks under Potential Black Swan (因祸得福)

Are you worrying about the current stock market fears which may become the next Black Swan: Russia / Ukraine war, high inflation and interest rate hike, resulting in significant market correction? Is it time to Buy, Hold, Sell, Wait or Shorting?

In this Dr Tee 1.5hr video education (6 Giant Singapore Banking & Finance Stocks under Potential Black Swan), you will learn:
1) Impact of Political Economy and Business on Stocks
– Russia / Ukraine War
– High Inflation & Interest Rates Hike
– Recent Final Financial Reports of Case Studies

2) Singapore Stock Market Outlook
– Short term, medium term & long term

3) 6 Giant Singapore Banking & Finance Stocks
– SG Giant Bank Stock: DBS Bank (SGX: D05)
– SG Giant Bank Stock: OCBC Bank (SGX: O39)
– SG Giant Bank Stock: UOB Bank (SGX: U11)
– SG Giant Insurance Stock: UOI – United Overseas Insurance (SGX: U13)
– SG Giant Insurance Stock: Great Eastern (SGX: G07)
– SG Giant Financial Stock: Singapore Exchange – SGX (SGX: S68)

4) Long Term / Mid Term Investing vs Short Term Trading with 3 Strategies
– Optimism Analysis (Cyclic Investing)
– Fundamental Analysis (Value Investing)
– Technical Analysis (Trend-following Trading)

Here is English Version of Dr Tee Video Course (Chinese version is also available as Dr Tee is bilingual). Enjoy and give your comments for improvement. You may subscribe to Dr Tee Youtube channel (Ein Tee) for future Dr Tee video talks.

English Video:


你害怕目前潜在的股票市场黑天鹅 (俄罗斯与乌克兰战争、高通膨、加息) 吗? 应该买、卖、持有、等待、还是卖空?

在这Dr Tee 1小时教育视频(6只新加坡金融牛股在黑天鹅阴影),您可学习:
1) 政治经济影响股市
– 俄罗斯与乌克兰战争
– 高通膨、加息
– 最新财表

2) 新加坡股市展望

3) 6只新加坡金融强股
– 新加坡银行巨股: 星展银行 DBS Bank (SGX: D05)
– 新加坡银行巨股: 华侨银行 OCBC Bank (SGX: O39)
– 新加坡银行巨股: 大华银行 UOB Bank (SGX: U11)
– 新加坡保险巨股: 大华保险 UOI – United Overseas Insurance (SGX: U13)
– 新加坡保险巨股: 大东方控股 Great Eastern (SGX: G07)
– 新加坡金融巨股: 新加坡交易所 Singapore Exchange – SGX (SGX: S68)

4) 长中期投资与短期交易三招
– 乐观指数分析 (周期投资)
– 基础分析 (价值投资)
– 技术分析 (趋势交易)

这儿是 Dr Tee 华语视频 (英语视频也已完成,Dr Tee 双语皆行)。请欣赏鄙作,留言求进步。您可订阅 Dr Tee Youtube 频道(Ein Tee),链接未来投资视频。

Chinese Video (华语视频):

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There are over 2000 giant stocks in the world based on Dr Tee criteria, choice of 10 Dream Team giant stocks have to align with one’s unique personality, eg. for shorter term trading (eg. momentum or swing trading) or longer term investing (cyclic investing, undervalue investing or growth investing). Readers should not just “copy and paste” any stock (What to Buy, When to Buy/Sell) as successful action taking requires deeper consideration (LOFTP strategies – Level / Optimism / Fundamental / Technical / Personal Analysis) which you could learn further from Dr Tee Free 4-hr Webinar.

Drop by Dr Tee free 4hr webinar (learning at comfort of home with Zoom) to learn how to position in global giant stocks during COVID-19 stock crisis with 10 unique stock investing strategies, knowing What to Buy, When to Buy/Sell.

Zoom will be started 30 min before event, bonus talk (Q&A on any investment topics from readers) for early birds. There are many topics we will cover in this 4hr webinar, Dr Tee can have more time for Q&A if you could stay later after the webinar, you could ask on any global and local stocks including but not limited to 30 STI component stocks:

Ascendas Reit (SGX: A17U), CapitaLand (SGX: C31), CapitaLand Integrated Commercial Trust (SGX: C38U), City Development (SGX: C09), ComfortDelGro (SGX: C52), Dairy Farm International (SGX: D01), DBS Bank (SGX: D05), Frasers Logistics & Commercial Trust (SGX: BUOU), Genting Singapore (SGX: G13), Hongkong Land (SGX: H78), Jardine Cycle & Carriage (SGX: C07), Jardine Matheson Holdings JMH (SGX: J36), Keppel Corp (SGX: BN4), Keppel DC Reit (SGX: AJBU), Mapletree Commercial Trust (SGX: N2IU), Mapletree Industrial Trust (SGX: ME8U), Mapletree Logistics Trust (SGX: M44U), OCBC Bank (SGX: O39), SATS (SGX: S58), Sembcorp Industries (SGX: U96), Singapore Airlines (SGX: C6L), Singapore Exchange (SGX: S68), Singtel (SGX: Z74), ST Engineering (SGX: S63), Thai Beverage (SGX: Y92), UOB Bank (SGX: U11), UOL (SGX: U14), Venture Corporation (SGX: V03), Wilmar International (SGX: F34), YZJ Shipbldg SGD (SGX: BS6).

Dr Tee will cover over 20 case studies, Singapore giant stocks, eg. CapitaLand Integrated Commercial Trust (SGX: C38U), Singapore Exchange (SGX: S68), Keppel Corp (SGX: BN4), Top Glove (SGX: BVA), Jardine Matheson Holdings JMH (SGX: J36), Vicom (SGX: WJP) and many others, Malaysia giant stocks, Hong Kong giant stocks and US giant stocks, both long term investing and short term trading.

There are limited tickets left for this 4hr free webinar, please ensure 100% you could join when register: www.ein55.com

View quick preview video below, Dr Tee will introduce 10 key stock investment strategies (股票投资十招) to be learned in 4hr free stock webinar:

Register Here (Dr Tee Free 4hr Stock Webinar):  www.ein55.com

Dr Tee Stock Webinar

3 Singapore Bank Stocks (DBS, OCBC, UOB) vs Signature Bank 3X Profits (无名小卒)

Many readers have benefited from Dr Tee past 200 educational articles during pandemic, including making over 50% profits from 3 Singapore major bank stocks: DBS Bank, OCBC Bank and UOB Bank, which continue the strong momentum of prices with growing business.

However, the big money is usually with hidden giant stock (无名小卒), Dr Tee Graduates could see the opportunity 1 year ago in Signature Bank (NASDAQ: SBNY) with 3X potential profits gained so far, outperforming 50% rally of 3 Singapore major bank stocks.

Let’s learn further from Dr Tee on the journey of successes for these 4 giant bank stocks, including how to position in other remaining Top 100 global giant bank stocks. A review of latest financial reports, stock prices, Ein55 intrinsic values and Optimism levels will be given.

With pandemic recovery over the last 1 year, 3 Singapore major bank stocks, DBS Bank (SGX: D05), OCBC Bank (SGX: O39) and UOB Bank (SGX: U11) have recovered both in share prices (50% rally from lower optimism levels to about fair values of mid optimism currently) and also businesses, since Q2/2020 circuit breaker period. 

In the recent interim financial reports of H1/2021, all 3 Singapore giant bank stocks continue to report better earnings than the 6-12 months ago, partly due to growing businesses and lower allowance for NPL (Non-Performing Loans), supported by strong Singapore GDP growth (14.3% in Q2/2021), aligned with rapid global economy recovery (US GDP growth by 6.5% in Q2/2021).

Despite lower interest rate income due to lower NIM (Net Interest Margin), overall bank sector businesses (including investment, wealth management, credit card, insurance, etc) are profitable. Despite US treasury bond yield is getting lower over the past few months with less pressure on bank interest rate hike, global bank stocks still have positive outlook because of non-interest rate income is growing more rapidly. Higher global inflation rates may also accelerate the pace of central banks of major economies to increase interest rates which will be favorable to giant bank stocks.

From the table below, we may observe that 3 Singapore major bank stocks have comparable results, all are suitable as mid-fielders for both capital gains and passive incomes (dividend). In fact, they contribute to about 30% of Singapore STI Index, therefore the price trends are generally aligned with STI which is near to fair value of mid optimism level.

4 Giant Bank StocksROE (%)DY (%)PB
DBS Bank (SGX: D05)8.62.81.5
OCBC Bank (SGX: O39)7.22.51.2
UOB Bank (SGX: U11)6.92.91.2
Signature Bank (NASDAQ: SBNY)9.00.91.9

As expected, MAS recently announced to waive the 60% dividend payment cap of 3 Singapore major bank stocks, implying the potential of dividend yield in FY2021 could be increased by 100/60 = 67%, from current 2.5-3% to 4-5%. This is partially confirmed by recent announcement of interim dividends, back to FY2019 level before pandemic, likely will be higher for next 6 months if higher earnings by end of 2021 as usually 50% earnings (DBS and UOB) will be paid as dividend while OCBC is about 45% dividend payout ratio (more reserves for growth).

This confirmation by MAS is an important news for long term investors who aim for passive incomes, despite the best time to invest in these 3 banks stocks was in the worst time of pandemic during Q2-Q3/2020, eg. OCBC at about $8+/share while DBS and UOB below $20/share, shared by Dr Tee over the past 1 year of free public webinars (www.ein55.com) and articles, action takers could enjoy fruits of 6-7% dividend yield now, on top of over 50% capital gains over the past 1 year of pandemic recovery.  This is much better than “safe” investment of keeping money as cash in banks for 0.3% interest rate or even Singapore Savings Bond of 0.5% return for the first year.

Currently, Singapore STI and 3 Singapore bank stocks are showing mid bullish trend but not strong enough for traders. A key trading signal is breakout of 3200 points resistance of STI, requiring support of other 27 STI component stocks. Traditionally, Aug is month for Ex-dividend date of many STI component stocks, therefore if Aug could achieve a monthly positive gain for STI, is a strong signal for DBS Bank, OCBC Bank and UOB Bank.

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Many investors like to invest in bank stocks with BIG names but big size or most famous stock may not always be the best, eg. Hong Kong largest bank, HSBC Bank (HKEX: 0005) is a weak bank stock.  Even an investor may run of idea of What to Buy, may refer to earlier Dr Tee article on Top 100 Bank Stocks in the world:

https://www.ein55.com/2021/03/top-100-singapore-and-global-bank-stocks-to-profit/

Both 3 Singapore major banks and Signature Bank (#76 in the long list) are listed as Top 100 Bank stocks. If bank stock interested by reader is not listed, may need to do more in-depth analysis before investing.  Signature Bank is comparable in size with 3 Singapore banks but still considered small relative to big names in wall street, therefore gaining little attention from global investors who probably know more about JP Morgan Chase (NYSE: JPM) or even weaker bank stocks such as Citi Group (NYSE: C).

Signature Bank is a commercial bank with business mainly in state of New York (USA) and a few other states. So, it is relatively not known to global investors, few Asian investors may know how to invest in this hidden giant stock. Despite the businesses are strong with consistent growth over the past decade, after share prices reaching high Ein55 Optimism level of about $140 in Year 2017, starting to correct to lower optimism, reaching low optimism level of around $70/share during 2020 pandemic, which is 50% discount in share price but value becomes higher each year.  The best “crisis” stock is when value is doubled but price is halved but few people could bridge between fundamental and technical worlds which needs more insights.

Dr Tee assigned Signature Bank as homework to Ein55 graduates during Aug 2020, possible to enter initially with contrarian investing (average down will falling in share prices) when share price less than $90 or with average up above $100 after the breakout from double bottom (see optimism chart of Signature Bank) or trend-following momentum trading from $100+ to $200+ in a few months. Even for long term investor (Buy & Hold), Signature Bank has grown over 12 times in share prices over the past 2 decades but it requires strong control of emotions, especially to hold through global financial crisis with significant price correction.

In Jan 2021 Ein55 Graduates Gathering Webinar, Dr Tee shared this giant stock again, despite at around $140, the stock continues to surge till high Ein55 Optimism of $255/share, potential 2 to 3 times profits for those who could Buy at Low Optimism (below $100) and Sell at High Optimism (about above $200).  In July 2021 Ein55 Gathering Webinar, Dr Tee has shared another healthcare giant stock which has surged over 20% in 1 month since then (will be reported in future). 

There is little “luck” in stock investment, each of the fruit of investment is action taking by readers who could take calculated risks, applying strategy aligning with own personality.  A real trader and investor has to take further action: Buy, Hold, Sell, Wait or Shorting with independent thinking.  Without action taking, a reader is only a ‘knowledge collector”, knowing why or how but could not generate any profit.

Many investors know the secret of making money is Buy Low Sell High but if purely based on price action (i.e. Technical Analysis), the probability of success may not be high, especially Buy Low may Get Lower. Success in Signature Bank requires integration of Ein55 styles of investing, especially with LOFTP Strategies: Level, Optimism, Fundamental, Technical and Personal Analysis, sharing regularly in hundreds of Dr Tee educational articles in the past decade.

Unlike 3 Singapore major banks, Signature Bank is more suitable for cyclic investing (then become momentum trading) with support by strong growing businesses. Since the current share prices have reached high optimism level with sideways share prices, potential traders may need to wait for stronger signal or consider other Top 100 global bank stocks in earlier list, some still have over 50% upside potential of share prices.

Bank stocks are cyclical in nature, therefore the best time to invest in a giant bank stock is usually during the recovery phase from global or regional financial crisis. Even an investor may miss the last 1 year of pandemic stock crisis to Buy Low Sell Fair Price, not to miss the next few years with opportunity for giant bank stocks moving from fair prices to greedy prices at high optimism levels. After that, the next Black Swan would wait to reset the global stock market again with a new Global Financial Crisis, usually over 50% discount in stock indices.  Instead of waiting for sky to fall down one day (wasting the opportunity cost of time which could be several years), a more practical approach is to apply trend-following strategy to ride the uptrend of global giant stocks during bullish stock market.

There are many other global giant stocks prepared to surge with pandemic recovery, are you ready to become their business partners as a stock investor?

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There are over 2000 giant stocks in the world based on Dr Tee criteria, choice of 10 Dream Team giant stocks have to align with one’s unique personality, eg. for shorter term trading (eg. momentum or swing trading) or longer term investing (cyclic investing, undervalue investing or growth investing). Readers should not just “copy and paste” any stock (What to Buy, When to Buy/Sell) as successful action taking requires deeper consideration (LOFTP strategies – Level / Optimism / Fundamental / Technical / Personal Analysis) which you could learn further from Dr Tee Free 4-hr Webinar.

Drop by Dr Tee free 4hr webinar (learning at comfort of home with Zoom) to learn how to position in global giant stocks during COVID-19 stock crisis with 10 unique stock investing strategies, knowing What to Buy, When to Buy/Sell.

Zoom will be started 30 min before event, bonus talk (Q&A on any investment topics from readers) for early birds. There are many topics we will cover in this 4hr webinar, Dr Tee can have more time for Q&A if you could stay later after the webinar, you could ask on any global and local stocks including but not limited to 30 STI component stocks:

Ascendas Reit (SGX: A17U), CapitaLand (SGX: C31), CapitaLand Integrated Commercial Trust (SGX: C38U), City Development (SGX: C09), ComfortDelGro (SGX: C52), Dairy Farm International (SGX: D01), DBS Bank (SGX: D05), Frasers Logistics & Commercial Trust (SGX: BUOU), Genting Singapore (SGX: G13), Hongkong Land (SGX: H78), Jardine Cycle & Carriage (SGX: C07), Jardine Matheson Holdings JMH (SGX: J36), Keppel Corp (SGX: BN4), Keppel DC Reit (SGX: AJBU), Mapletree Commercial Trust (SGX: N2IU), Mapletree Industrial Trust (SGX: ME8U), Mapletree Logistics Trust (SGX: M44U), OCBC Bank (SGX: O39), SATS (SGX: S58), Sembcorp Industries (SGX: U96), Singapore Airlines (SGX: C6L), Singapore Exchange (SGX: S68), Singtel (SGX: Z74), ST Engineering (SGX: S63), Thai Beverage (SGX: Y92), UOB Bank (SGX: U11), UOL (SGX: U14), Venture Corporation (SGX: V03), Wilmar International (SGX: F34), YZJ Shipbldg SGD (SGX: BS6).

Dr Tee will cover over 20 case studies, Singapore giant stocks, eg. CapitaLand Integrated Commercial Trust (SGX: C38U), Singapore Exchange (SGX: S68), Keppel Corp (SGX: BN4), Top Glove (SGX: BVA), Jardine Matheson Holdings JMH (SGX: J36), Vicom (SGX: WJP) and many others, Malaysia giant stocks, Hong Kong giant stocks and US giant stocks, both long term investing and short term trading.

There are limited tickets left for this 4hr free webinar, please ensure 100% you could join when register: www.ein55.com

View quick preview video below, Dr Tee will introduce 10 key stock investment strategies (股票投资十招) to be learned in 4hr free stock webinar:

Register Here (Dr Tee Free 4hr Stock Webinar):  www.ein55.com

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Latest 30 STI index Stocks Strategies (卧虎藏龙)

30 STI index stocks represent the overall Singapore stock market performance. The list is dynamic, recent new comers are Keppel DC Reit (replacing SPH) and Frasers Logistics and Commercial Trust (replacing Jardine Strategic Holdings). During the COVID-19 stock recovery, there is a sector rotation, investors start to pay more attention to cyclical stocks (eg. bank, properties and transportation sectors, etc), which are main businesses of 30 STI stocks.

In this article, you will learn from Dr Tee on the Latest 30 STI Index Stocks Strategies, some may be considered for longer term investing and / or short term trading with COVID-19 recovery stock rally. Bonus for readers who could read every words of the entire article, learning unique strategy to position in 30 STI Index stocks for both passive incomes (dividend) and capital gains with potential share price appreciation. Both Ein55 Optimism levels and intrinsic values will be shared for 6 groups of STI stocks with potential. Learn key applications of ALL 30 STI stocks with 1 article here:

4 Banking & Finance STI Stocks (35% of STI):
– DBS Bank (SGX: D05), OCBC Bank (SGX: O39), UOB Bank (SGX: U11), Singapore Exchange (SGX) (SGX: S68)

4 Property STI Stocks (9% of STI):
– CapitaLand (SGX: C31), City Development (SGX: C09), Hongkong Land (SGX: H78), UOL (SGX: U14)

7 REITs STI Stocks (11% of STI):
– Ascendas Reit (SGX: A17U), CapitaLand Integrated Commercial Trust (CICT) (SGX: C38U), Frasers Logistics & Commercial Trust (SGX: BUOU), Keppel DC Reit (SGX: AJBU), Mapletree Commercial Trust (SGX: N2IU), Mapletree Industrial Trust (SGX: ME8U), Mapletree Logistics Trust (SGX: M44U)

4 Jardine STI Stocks (14% of STI):
– Jardine Matheson Holdings – JMH (SGX: J36), Jardine Cycle & Carriage (SGX: C07), Hongkong Land (SGX: H78), Dairy Farm International (SGX: D01)

4 Transportation STI Stocks (6% of STI):
– ComfortDelGro (SGX: C52), Singapore Airlines (SIA) (SGX: C6L), SATS (SGX: S58), Yangzijiang Shipbuilding (YZJ) (SGX: BS6)

8 Other Sectors STI Stocks (27% of STI):
– Genting Singapore (SGX: G13), Keppel Corp (SGX: BN4), ST Engineering (SGX: S63), Sembcorp Industries (SGX: U96), Singtel (SGX: Z74), Thai Beverage (SGX: Y92), Venture Corporation (SGX: V03), Wilmar International (SGX: F34)

Investing in stock index of a country with growing economy (eg. Singapore STI, China A50 / Hong Kong HSI, USA S&P500 and Nasdaq, Malaysia KLCI, etc) is a defensive strategy as the stock index is well diversified over a portfolio of large cap stocks (卧虎藏龙) from various sectors, able to minimize unsystematic risks due to uncertainties in businesses and sector cycles. An investor may invest in stock indices with ETFs (Exchange Traded Fund), eg. STI Singapore has 2 ETFs: SPDR STI  ETF (SGX: ES3) and Nokko AM STI ETF (SGX: G3B), can be traded like any stock.  This provides a way for small capital investor to diversify in investment with minimal capital, eg. 1 STI ETF equals to investing in 30 STI stocks at the same time with different weightages.

The best time to buy 30 STI stocks or index ETF is always during global stock crisis (eg. Year 2020-2021 during pandemic, 2008—2009 during subprime crisis, etc), not only able to maximize the dividend yield (due to lower entry share price), also could have higher potential of capital gains (when market cycle moves from fear in low optimism to greed in high optimism). STI Index stocks investing is not for dividend collection alone, may be integrated with growth investing, swing trading, momentum trading, cyclic investing, defensive investing, undervalue investing and other Ein55 strategies.

30 STI index stocks represent the 30 largest stocks by trading market capitalization (trading price x trading volume). Therefore, not all are giant stocks (based on Dr Tee giant stock criteria).  Below are the 30 STI index component stocks based on the last price traded (20 Apr 2021), sorted by 6 main groups with details of 3 key Fundamental Criteria:
1) ROE (a criteria for growth stocks, eg. ROE > 5%),
2) Dividend Yield, DY (a criteria for dividend stocks, eg. DY > 3%),
3) Price-to-Book (PB) ratio, Price/NAV (a criteria for undervalue stocks, eg. PB < 1).

From the table sorted below, over 50% (18/30 STI stocks) have growing businesses (over 5% ROE, Return on Equity) while 7 stocks were making losses during pandemic in Year 2020. With recovery of pandemic, there are only 20% (6/30 STI stocks) are still undervalue (Price to Book ratio, PB < 1). There are over 50% (16/30 STI stocks) have dividend yield over 3%, potential for dividend investing. STI ETF has an average dividend yield of about 3%, may be considered as replacement for long term fixed deposit but it requires a stock crisis to start this saving scheme at lower Ein55 optimism level to minimize the potential capital loss due to emotional stock market.

However, not all the 30 STI index stocks listed are giant stocks. A growing business in the past may not be sustainable during COVID-19 period, could end up as a crisis stock. Fundamental Analysis alone is not sufficient, a high dividend yield stock may be a value trap as this may be the result of lower share price with weakening businesses. Therefore, deeper analysis is required with LOFTP (Level, Optimism, Fundamental, Technical, Personal Analysis) Strategies. 

No30 STI StocksROE (%)PBDY (%)
1Ascendas Reit (SGX: A17U)4.971.44.8
2CapitaLand Integrated Commercial Trust (CICT) (SGX: C38U)2.6831.14.0
3CapitaLand (SGX: C31)0.92.4
4City Development (SGX: C09)0.91.0
5ComfortDelGro (SGX: C52)2.3711.50.8
6DBS Bank (SGX: D05)8.6421.43.0
7Dairy Farm International (SGX: D01)20.54.43.9
8Frasers Logistics & Commercial Trust (SGX: BUOU)12.061.34.8
9Genting Singapore (SGX: G13)0.8841.41.1
10Hongkong Land (SGX: H78)0.34.4
11Jardine Matheson Holdings JMH (SGX: J36)1.62.7
12Jardine Cycle & Carriage (SGX: C07)8.0731.02.4
13Keppel Corp (SGX: BN4)0.91.8
14Keppel DC Reit (SGX: AJBU)8.6472.33.4
15Mapletree Commercial Trust (SGX: N2IU)9.3851.23.8
16Mapletree Industrial Trust (SGX: ME8U)10.311.64.1
17Mapletree Logistics Trust (SGX: M44U)8.2351.53.6
18OCBC Bank (SGX: O39)7.2271.12.7
19SATS (SGX: S58)10.413.01.4
20Singapore Exchange (SGX) (SGX: S68)37.98.92.9
21Singapore Airlines (SIA) (SGX: C6L)1.30.6
22ST Engineering (SGX: S63)22.765.43.8
23Sembcorp Industries (SGX: U96)1.21.8
24Singtel (SGX: Z74)4.0111.64.8
25Thai Beverage (SGX: Y92)15.962.93.4
26UOB Bank (SGX: U11)6.9021.13.0
27UOL (SGX: U14)0.1340.72.2
28Venture Corporation (SGX: V03)11.52.33.7
29Wilmar International (SGX: F34)8.1251.42.4
30Yangzijiang Shipbuilding (YZJ) (SGX: BS6)7.7810.83.3

Here, let’s focus on 30 STI Index Component Stocks in Singapore over 6 main groups (Hongkong Land is counted twice under both Jardine Stock & Property Stock), learning the unique positioning:

4 Banking & Finance STI Stocks (35% of STI):
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– DBS Bank (SGX: D05), OCBC Bank (SGX: O39), UOB Bank (SGX: U11), Singapore Exchange (SGX) (SGX: S68)

3 major banks in Singapore (DBS, OCBC, UOB – all are giant stocks with close relative performance in medium term) are key pillars to STI, contributing to 33% or 1/3 of STI. Therefore, price movement and business changes in Singapore banks or financial sector would affect STI direction significantly. With improvement of pandemic condition, all 3 Singapore major banks reported better quarterly results. As a result, the share prices have recovered from lower optimism level, currently near to their respective intrinsic values.  This implies the cyclic upside potential of DBS, OCBC and UOB are limited (unless there is another global financial crisis to buy low in future), share prices would grow gradually along their intrinsic values with time.

Main current strategy for 3 bank stocks could be momentum trading (Buy High Sell Higher) with support of increasing bank interest rate (improving interest income with higher NIM, Net Interest Margin) over the next few years.  When Asian stock market are over-price (exceeding intrinsic values) with greedy market emotions, STI may achieve a new historical high, bank stock investors may need to plan for exit strategy at higher Ein55 Optimism level.  Meanwhile, Singapore bank stocks are still suitable for long term dividend investing, especially if 60% dividend payout cap (based on FY2019) may be lifted by MAS from Q2/2021, then dividend yield would increase by 50%, achieving normal dividend yield of nearly 5% (comparable with REITs), an excellent alternative to cash deposit in banks or even Singapore Savings Bond which has only 0.5% interest rate yearly, becoming negative return when inflation is over 1%.

Singapore Exchange (SGX) is a moderate growth stock due to a monopoly business model, regardless of bullish or bearish stock market, as long as there is higher demand to buy or sell stocks, earnings would increase.  With challenges from Hong Kong Stock Exchange (HKEX: 388) who wins the MSCI Future business, Singapore Exchange has to explore new derivatives and widen the customer base to more global investors. Intrinsic value of Singapore Exchange is about $13, still undervalue at the moment, having upside potential but patience is required due to moderate growth.

Even if an investor could not buy any Singapore bank stock, may follow Ein55 Optimism strategy to buy STI index at low optimism (<25%) during pandemic, recovery from 2200+ to 3200+ points, the reward could be 30% – 50% in 1 year, depending on the timing of entry when “others are fearful”.

Readers may read earlier article (June 2020 during pandemic with low optimism prices) by Dr Tee for more details on 30 Banking & Finance stocks in Singapore, not limited to STI:
https://www.ein55.com/2020/06/30-singapore-banking-and-finance-stocks/


4 Property STI Stocks (9% of STI):
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– CapitaLand (SGX: C31), City Development (SGX: C09), Hongkong Land (SGX: H78), UOL (SGX: U14)

4 major property stocks in Singapore (CapitaLand, City Development, Hongkong Land and UOL) are undervalue in nature (PB < 1), only contributing to 9% of STI. With recovery of pandemic, lower optimism levels of property stocks start to appreciate in share prices but still below their intrinsic values currently. For example, Hongkong Land has nearly 2X potential from current share price of $5 to its intrinsic value of about $9 but it has a new variable of stagnant Hongkong property market.  Despite Hongkong Land is listed in Singapore, main property business is located in Hong Kong, devaluation of Hong Kong properties results in accounting losses in FY2020 but cashflow is not affected, therefore able to pay consistent dividend as if a REIT (dividend yield of 4-5%).

Among all 4 STI property stocks, City Development has the weakest business fundamental (partly due to setback in China investment with Sincere Property), therefore even if share price has the most discount, this could be a value trap for longer term investor, therefore a lower quality of crisis stock.  UOL and CapitaLand are relatively stronger in businesses.  Despite Singapore property construction business was affected during pandemic, actual property price is growing up gradually.  Therefore, Singapore property stocks are likely to recover strongly after pandemic.

Temasek stock, CapitaLand, will be delisted in near future after recent restructuring, replacing with another potential new giant stock, CLIM (investment asset management company which focus on growth investing). In future, the undervalue CapitaLand may be listed again with higher premium price, a better option than continue the current listing with long term undervalue price under the theme of property stock.

Similar to bank stocks, Singapore property stocks are also cyclical in nature, more suitable with Buy Low Sell High strategy.  STI property stocks also could be a defender with dividend investing, especially for Hongkong Land, almost behaving like a Reit with steady dividend payment (except not required by law). Since Singapore property stocks are undervalue in nature, this is a layer of safety measure for long term investor as the asset value is more than its current share price.  However, if major shareholder decides to delist an undervalue property stock at low optimism level, then minority shareholders may not gain much after sharing the pain of holding in long term. Therefore, when Singapore stock market and property market rise to a higher optimism level, a property stock investor may consider the exit strategy (Sell High and Buy Low next time), no need to hold for long term.

Readers may read earlier article (June 2020 during pandemic with low optimism prices) by Dr Tee for more details on 47 Undervalue Property Stocks in Singapore, not limited to STI:
https://www.ein55.com/2020/06/47-undervalue-sg-property-stocks-for-privatization-including-perennial/


7 REITs STI Stocks (11% of STI):
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– Ascendas Reit – Areit (SGX: A17U), CapitaLand Integrated Commercial Trust – CICT (SGX: C38U), Frasers Logistics & Commercial Trust – FLCT (SGX: BUOU), Keppel DC Reit (SGX: AJBU), Mapletree Commercial Trust – MCT (SGX: N2IU), Mapletree Industrial Trust – MIT (SGX: ME8U), Mapletree Logistics Trust – MLT (SGX: M44U)

The earlier 2 new comers of STI are MIT and FLCT, both are REITs, The 4 STI reserved list (for future consideration, eg. after replacement of CapitaLand after it is delisted) are all REITs or Trust related stocks, showing the increasing demand for defensive dividend investing: Keppel REIT, Suntec REIT, Frasers Centrepoint Trust and NetLink NBN Trust.

7 STI REITs in Singapore (Areit, CICT, FLCT, Keppel DC Reit  MCT, MIT, MLT) are all giant REITs for dividend investing, the ideal time to invest was during pandemic when “others are fearful” in 2020 with over 30% price correction at low Ein55 Optimism level, resulting in higher dividend yield over 4 to 7%. “Buy Low” is only applicable for giant stocks, otherwise “Buy Low” may become lower for weak fundamental stocks.

Most of these 7 STI REITs have recovered to near or even above their intrinsic values, except CICT is still at moderate low optimism, having over 20% discount below its fair value, growth is slow but steady.  MCT is close to its intrinsic value but slower growth. Both MLT and FLCT are at higher Ein55 Optimism levels, supported by logistics business with higher demand during pandemic.

Singapore REITs in general only have moderate dividend yield after recovery from pandemic so far. A few non-STI REITs with high dividend yield could be a value trap with weaker business, driving lower prices and therefore higher dividend yield).  Dividend yield should not be the main selection criteria of a giant REIT.

These 3 industrial STI REITs (Keppel DC Reit, MIT, Areit) have strong uptrend momentum during the early stage of pandemic (industry sector business was not much affected during circuit breaker time) but suffering in sector rotation when pandemic condition improves in later stage, share prices were corrected more than 20% over the past few months, currently under second round of price recovery, may be considered for medium term trading with trend-following strategies, applying S.E.T. (Stop Loss / Entry / Target Prices) in trading plan.  All these 3 STI REITs have partial business related to high growth data center (100% for Keppel DC Reit, 30% for MIT, 10% for Areit) with higher demand in internet applications during and post pandemic.

In summary, 7 STI REITs are excellent choices for dividend investing but the best time for investing is always when “others are fearful” during Global Financial Crisis with low Ein55 Optimism level. Currently these giant REITs are more suitable for medium term dividend investing or even trading with trend-following strategies. Unlike property market, REITs are hybrid of stocks and properties, therefore they are cyclic in nature, an investor could suffer significant capital loss when buying at high Ein55 Optimism level with downtrend prices, especially near to peak of stock market.

Readers may read earlier article (June 2020 during pandemic with low optimism prices) by Dr Tee for more details on 42 REITs and 16 Business Trusts in Singapore, not limited to STI:
https://www.ein55.com/2020/06/42-singapore-reits-16-business-trusts/


4 Jardine STI Stocks (14% of STI):
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– Jardine Matheson Holdings – JMH (SGX: J36), Jardine Cycle & Carriage – JCC (SGX: C07), Hongkong Land (SGX: H78), Dairy Farm International (SGX: D01)

Jardine group of stocks are influential to STI, even with delisting of JSH, these 4 Jardine giant stocks (JMH, JCC, Hongkong Land and Dairy Farm) still dominate 14% of STI by market cap.  Currently, all these 4 Jardine STI stocks are recovering together from very low Ein55 Optimism level, partly supported by the corporate news of acquisition of JSH by JMH, triggering speculation on potential next undervalue Jardine stock to acquire which may surge in prices.

In fact, acquisition of a giant stock at low optimism (eg. JSH) should be a nightmare for a long term investor, despite a premium price (typically about 20%) is given for the offer to minority shareholders.  For long term investor who bought a stock at higher optimism level, even could hold a stock for long term or lifetime, may not able to stop the major shareholder from leveraging on low optimism opportunity to delist a company at undervalue prices (including CapitaLand, JSH and many other good fundamental stocks), a few may even end up with losses as entry price at high optimism is higher than the acquisition price. 

Therefore, to minimize systematic risks (eg. global financial crisis, sector correction, etc), investing in a portfolio of 10-20 giant stocks at lower Ein55 Optimism with strong holding power could improve the probability of winning in investment. Stock market in short term is a voting machine (up and down daily, sensitive to news) but in a long term, it becomes a weighing machine (steady growth in years with support of growing business).

All the 4 Jardine STI stocks are aligned with recovery of share prices from low Ein55 Optimism levels. They are considered laggard stocks (slower in recovery from pandemic), limited number of giant stocks with higher upside cyclic potential. However, Jardine stocks are cyclical in nature, stock price volatilities may be beyond the risk tolerance level of some traders or even investors.

Readers may read earlier article (Apr 2020 during the worst time of pandemic with very low optimism prices) by Dr Tee for more details on 7 Jardine Group of Giant Stocks, not limited to STI:
https://www.ein55.com/2020/04/7-jardine-king-of-singapore-stocks/


4 Transportation STI Stocks (6% of STI):
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– ComfortDelGro (SGX: C52), Singapore Airlines (SIA) (SGX: C6L), SATS (SGX: S58), Yangzijiang Shipbuilding (YZJ) (SGX: BS6)

There are 4 transportation STI stocks: ComfortDelGro (land transportation), Singapore Airlines (airlines), SATS (partial airlines), Yangzijiang Shipbuilding (shipping). Transportation sector in general is badly affected during pandemic but strongly supported by government grants, therefore these stocks start to recover with slow business improvement in later stage of pandemic.  Stock market is always forward looking, most people believe pandemic would end sooner or later, therefore global vaccination starts to recover the share prices of transportation stock, despite their businesses are still weak.

ComfortDelgro is mainly on taxi business, also has bus / MRT / car inspection businesses through subsidiaries SBS Transit (SGX: S61) and Vicom (SGX: WJP).  The impact of pandemic is much less than the airlines sector, mainly affected during circuit breaker time (Q2/2020) when most people stay at home.  Share price of ComfortDelgro was cut by nearly half during pandemic, then share price starts to recover from low Ein55 Optimism. Intrinsic value of ComfortDelgro is about $2.50, there is cyclic upside potential in share price with diminishing fear, supported by low community cases of COVID-19 in Singapore, allowing land transportation business to go back to normal. Vicom as a more defensive dividend stock (but dividend yield is moderate after rising in share prices after 4-to-1 stock split) with stable and predictable car inspection business (nearly monopoly, sharing the pie with ST Engineering which has STA car inspection centers), supplying critical cashflow to major shareholder, ComfortDelgro (2/3 ownership of Vicom). SBS Transit has become an asset light company after LTA changes of its business model a few years ago (focusing as transport operator with lower expenses and more predictable incomes), gradually become a giant stock but Ein55 Optimism level is relatively high, more suitable for trading, not yet for investing.

YangZiJiang (YZJ) is in shipbuilding industry, relatively stronger than most shipping or marine related stocks with decade long of winter time in this sector. Pandemic in fact helps the shipping industry due to more intercontinental shipping activities. Baltic Dry Index (BDI, a measurement of inflation for shipping industry) has been surging since pandemic, a bullish business signal.  However, YangZiJiang is cyclic in nature, limited growth in long term with moderate dividend yield (3%), more suitable for short term trading, especially when there is rising interest in shipping related stocks.

SIA is a truly crisis stock as airlines passengers drop more than 90%, even parent shareholder, Temasek has to take the lead to help with rights and bonds issues, in additional to Singapore government financial aids.  However, the risk of SIA is not limited to pandemic, the gradual weakening of airlines business was shown even over the last 10 years before pandemic due to competitive airlines industry (eg. price competition for similar flight from City A to City B), similar to another “grandparents blue chip” stock, Singapore Press Holdings – SPH (SGX: T39) with declining business due to less readers (who access free info including news from internet) gradually over the decade.  Despite both SIA and SPH are no longer giant stocks for longer term investing, they may be considered for short term trading (with trend-following strategies) due to speculation of recovery in pandemic, especially after their stock prices were cut by half during pandemic.

SATS is a spinoff company of SIA about 3 decades ago with about 60% airlines gateway business and 40% F&B business.  SATS is indirectly affected by COVID-19 for airlines related business but it can still be compensated by F&B business, therefore a better financial position than most airlines stocks.  In fact, SATS is relatively a better investing choice than SIA, considering both have about 50% price discount during pandemic but SATS has higher growth potential than SIA, therefore may be considered for both longer term investing (current price is only 15% below its intrinsic value) or even shorter term trading.

In fact, even an investor has a lousy stock with weak business fundamental, could not accept the fact of capital loss with “long term investing”, may apply the powerful “Change Horse” strategy, i.e. selling weaker stock, using the remaining capital recovered to buy another stronger stock on the same day. This is a psychological strategy to strengthen the mind of an investor (as if a stock is never sold, just changing its name), despite mistake could be made in the past, there is a second choice, no need to keep on holding to the same weaker stock, changing its future with a giant stock.

Readers may read earlier article (Mar 2020 during the worst time of pandemic with very low optimism prices) by Dr Tee for more details of “Change Horse” strategy (SATS and SIA as examples, assuming an investor only prefers airlines stock):
https://www.ein55.com/2020/03/change-horse-strategy-sia-to-sats/


8 Other Sectors STI Stocks (27% of STI):
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– Genting Singapore (SGX: G13), Keppel Corp (SGX: BN4), ST Engineering (SGX: S63), Sembcorp Industries (SGX: U96), Singtel (SGX: Z74), Thai Beverage (SGX: Y92), Venture Corporation (SGX: V03), Wilmar International (SGX: F34)

The remaining 8 STI stocks come from various industries: Genting Singapore (casino), Keppel Corp (property / oil & gas), ST Engineering (technology), Sembcorp Industries (utility / property), Singtel (telecommunication), Thai Beverage (F&B), Venture Corporation (technology, Wilmar (commodity).  They are aligned with average 3.3% weightage of each STI stock (100% / 30 stocks = 3.3% per stock), total 27% of STI by market cap for 8 stocks.  However, due to less STI stocks in these miscellaneous sectors, therefore changes in each sector do not significantly affect STI index.

For example, early stage of pandemic supports share prices of high-tech stocks globally but STI had little gain due to lack of high-tech stocks, lagging behind comparing with US NASDAQ or even Hong Kong HSI indices.  On the other hand, since global stock market currently value more on cyclic sectors (most of STI component stocks) with pandemic recovery, therefore STI is leading compared to global peers since early Year 2021.  So, it is a blessing in disguise for STI to be lagging, so that late comers still have chance to enter the stock market with higher reward to risk ratio.

Among these 8 other sectors STI stocks, Singtel and Wilmar have the largest market cap. Singtel is a Temasek stock, a defensive dividend stock but telco overseas business overseas (contributing to over 50% revenue) is not as stable as in Singapore, therefore share prices have been corrected lower over the past few years, even before pandemic. Before pandemic, telco industry has been too competitive, over-saturated market with lower profit margins, many global and local telco stocks are affected with declining business (Singtel is still relatively stronger than other telco stocks).  Although 5G technology could create a new wave of future business, most profits may go to smart phone / 5G leaders (eg. Apple, NASDAQ: AAPL) and semi-conductor (eg. TSMC, NYSE: TSM) supplier giant stocks. Singtel has started to recover from low Ein55 Optimism but not supported by growing business, may take more time to achieve intrinsic value of nearly $4.  “Buy Low” in share price without growing business may fall into value trap in longer term (Buy Low Get Lower), therefore careful monitoring of future Singtel business is required for long term investing. Singtel is more suitable for trading currently.

Wilmar is a strong fundamental commodity stock with steady growth in palm oil and sugar businesses, supported by PPB (KLSE: 4065) of Kuok Group as major shareholder (head of Kuok family is Robert Kuok, the richest person in Malaysia while nephew, Kuok Khoon Hong, is Wilmar Chairman), aligning with recovery of commodity market including palm oil and sugar prices from lower Ein55 Optimism (supported further by weakening of US dollar with QE during pandemic). Wilmar share price follows its intrinsic value closely, therefore little opportunity to Buy Low unless there is a global financial crisis in future. Wilmar subsidiary with cooking oil business, YKA, is a new IPO stock in China stock market (larger market cap than Wilmar now due to higher demand in China stock market), would help to support the parent stock in longer term. In general, Wilmar can be a steady defender stock but may not be suitable for those who aim for quick gains.

Remaining 6 other STI stocks, each has its own pros and cons. Genting Singapore is a crisis stock, share price is recovering well from low Ein55 Optimism but business is limited by lack of international tourists to Singapore (potential customers for gambling business which is the main profit generator).  Thai Beverage is a higher quality crisis stock, share price is recovering from very low optimism but beer business is not much affected by pandemic, short term price is affected due to recent news to delay IPO plan for its subsidiary, BeerCo. Thai Beverage’s intrinsic value is about $1, current price is about 30% below this fair value.

ST Engineering is a defensive technology stock, share price is recovering from low optimism in pandemic, near to its intrinsic value, more suitable for medium term dividend investing.  Venture is a cyclic technology stock, more suitable for Buy Low Sell High (currently at high Ein55 Optimism level), more suitable for trading, may not for long term investing. There is a potential of Version 2.0 Dotcom bubble (Version 1.0 was in Year 2000) due to over-price global technology giant stocks, therefore investing in high tech stocks require trend-following trading strategies due to very high optimism in many technology stocks which could be fine for a period of time with support of growing economy after pandemic is over.

Keppel Corp is not supported by Temasek partial acquisition last year but share prices recover gradually with improvement in oil prices during pandemic (after the worst time of negative oil price in May 2020), but business is still declining, mainly supported by property market (eg. Keppel Land and Keppel Reit). Despite Keppel Corp plans to exit from Oil & Gas sector eventually in future, it could still benefit from the recovery of oil market as Keppel Offshore & Marine division may be merged with Sembcorp Marine (SGX: S51), another Temasek crisis stock, which is demerged recently from Sembcorp Industries.  After demerging, Sembcorp Industries becomes a giant stock overnight (before demerging, 1/3 business was affected by subsidiary, Sembcorp Marine with losing business in oil & gas), share prices have recovered from low Ein55 Optimism in pandemic, near to its intrinsic value currently, supported mainly by growing land development business and defensive utility business.

Out of 30 STI Index stocks, there are 50% or 15 Temasek related stocks: DBS, Singtel, Sembcorp Industry, Keppel Corp, Keppel DC Reit, CapitaLand, CICT, SIA, SATS, ST Engineering, Singapore Exchange, Areit, MIT, MCT and MLT. Temasek as a major or significant shareholder, provides stability to business and even share prices to these Temasek stocks, especially during stock or business crisis (including non-STI stock such as Olam (SGX: O32) when it was attacked by Muddy Waters during shorting many years ago.

Readers may read earlier article (Aug 2020 during pandemic with low optimism prices) by Dr Tee for more details on 26 Temasek stocks, not limited to STI:
https://www.ein55.com/2020/08/temasek-giant-stocks-corporate-actions/

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Between knowledge (eg. reading this educational article of 30 STI stocks) and fortune (eg. making profits in stocks), there is a bridge to cross called Action (Buy, Hold, Sell, Wait or Shorting).  Before making any decision, reader may need to understand own personality, eg. short term trading or long term investing, risk tolerance level and reward expectation, etc, then aligned with the right strategies. Similar to each profession, stock trading and investment skills can be learned, even in a free way (you are doing the right way now) if one could put in effort consistently to learn and apply.

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There are over 1500 giant stocks in the world based on Dr Tee criteria, choice of 10 Dream Team giant stocks have to align with one’s unique personality, eg. for shorter term trading (eg. momentum or swing trading) or longer term investing (cyclic investing, undervalue investing or growth investing). Readers should not just “copy and paste” any stock (What to Buy, When to Buy/Sell) as successful action taking requires deeper consideration (LOFTP strategies – Level / Optimism / Fundamental / Technical / Personal Analysis) which you could learn further from Dr Tee Free 4-hr Webinar.

Drop by Dr Tee free 4hr webinar (learning at comfort of home with Zoom) to learn how to position in global giant stocks during COVID-19 stock crisis with 10 unique stock investing strategies, knowing What to Buy, When to Buy/Sell.

Zoom will be started 30 min before event, bonus talk (Q&A on any investment topics from readers) for early birds. There are many topics we will cover in this 4hr webinar, Dr Tee can have more time for Q&A if you could stay later after the webinar, you could ask on any global and local stocks including but not limited to 30 STI component stocks:

Ascendas Reit (SGX: A17U), CapitaLand (SGX: C31), CapitaLand Integrated Commercial Trust (SGX: C38U), City Development (SGX: C09), ComfortDelGro (SGX: C52), Dairy Farm International (SGX: D01), DBS Bank (SGX: D05), Genting Singapore (SGX: G13), Hongkong Land (SGX: H78), Jardine Cycle & Carriage (SGX: C07), Jardine Matheson Holdings JMH (SGX: J36), Jardine Strategic Holdings JSH (SGX: J37), Keppel Corp (SGX: BN4), Keppel DC Reit (SGX: AJBU), Mapletree Commercial Trust (SGX: N2IU), Mapletree Industrial Trust (SGX: ME8U), Mapletree Logistics Trust (SGX: M44U), OCBC Bank (SGX: O39), SATS (SGX: S58), Sembcorp Industries (SGX: U96), Singapore Airlines (SGX: C6L), Singapore Exchange (SGX: S68), Singtel (SGX: Z74), ST Engineering (SGX: S63), Thai Beverage (SGX: Y92), UOB Bank (SGX: U11), UOL (SGX: U14), Venture Corporation (SGX: V03), Wilmar International (SGX: F34), YZJ Shipbldg SGD (SGX: BS6).

Dr Tee will cover over 20 case studies, Singapore giant stocks, eg. CapitaLand Mall Trust (SGX: C38U), Singapore Exchange (SGX: S68), Keppel Corp (SGX: BN4), Top Glove (SGX: BVA), Jardine Matheson Holdings JMH (SGX: J36), Vicom (SGX: WJP) and many others, Malaysia giant stocks, Hong Kong giant stocks and US giant stocks, both long term investing and short term trading.

There are limited tickets left for this 4hr free webinar, please ensure 100% you could join when register: www.ein55.com

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Top 100 Singapore and Global Bank Stocks to Profit (大小通吃)

An individual or even a country could not survive without a national bank which supplies cash to exchange for products and services needed in daily life. Even with low interest rates globally, giant bank stocks could still remain profitable, share prices recovering strongly during pandemic, sharing consistent dividends as passive incomes. Higher government bond yield could further support these giant bank stocks with positive outlook of more interest incomes.

In this article, you will learn from Dr Tee on Top 100 Singapore and Global Bank Stocks to profit in current stock market, some may be considered for longer term investing and / or short term trading with COVID-19 recovery stock rally. Bonus for readers who could read every words of the entire article, learning unique strategy to position in 10 global giant bank stocks for both passive incomes (dividend) and capital gains with potential share price appreciation. Both Ein55 Optimism levels and intrinsic values will be shared for each giant stock:

1) Singapore Giant Bank Stocks:

– DBS Bank (SGX: D05), OCBC Bank (SGX: O39), UOB Bank (SGX: U11)

2) Malaysia Giant Bank Stocks:

Public Bank (Bursa: 1295), Hong Leong Bank (Bursa: 5819), CIMB Bank (Bursa: 1023)

3) Hong Kong / China Giant Bank Stocks:

– Bank of China Hong Kong (HKEX: 2388), China Construction Bank (HKEX: 939)

4) US Giant Bank Stocks:

JP Morgan Chase (NYSE: JPM), HDFC Bank (NYSE: HDB)

During the COVID-19 stock recovery, there is a sector rotation with slower or even declining trend for global growth stocks. Investors start to pay more attention to cyclical stocks, especially for global giant bank stocks suffering with share prices in lower optimism, recovering together with pandemic, profiting in both capital gains (appreciation in share prices) and passive incomes (consistent dividend payments).

The best time to buy a giant bank stock is always during global stock crisis (eg. Year 2020-2021 during pandemic, 2008—2009 during subprime crisis, etc), not only able to maximize the dividend yield (due to lower entry price), also could have higher potential of capital gains (when market cycle moves from fear in low optimism to greed in high optimism). Dividend stock investing is not for dividend collection alone, may be integrated with growth investing, swing trading, momentum trading, cyclic investing, defensive investing, undervalue investing and other Ein55 strategies.

There are thousands of bank stocks globally but some are weak bank stocks, may not able to survive in the next Global Financial Crisis. The largest bank may not always a giant stock. For example, HSBC Bank (HKEX: 5) is the largest bank in Hong Kong but it is not a giant stock, share prices have been declining over the past decade with weaker businesses. A giant stock is not defined by its size, even a small regional bank could be a giant bank stock for investment (following Dr Tee Giant Criteria).

From the table sorted below for Top 100 Singapore and Global Bank Stocks, each has growing businesses over the past decade with reasonable dividends and positive ROE (Return on Equity). Most of these top bank stocks are affected temporarily by pandemic but still remain profitable with low interest environment. Since future bank interest rates are likely higher, Net Interest Margin (NIM) of global banks would be higher, therefore future earnings would be improving.  This potential is reflected in an hidden way with higher bond yield of governments globally.

However, not all the Top 100 global bank stocks listed are suitable for investing and/or trading. A growing business in the past may not be sustainable during COVID-19 period, could end up as a crisis stock. Fundamental Analysis alone is not sufficient, a stock with low optimism price may be a value trap as this may be the result of weakening businesses. Therefore, deeper analysis is required with LOFTP (Level, Optimism, Fundamental, Technical, Personal Analysis) Strategies. 

Nevertheless, this list of Top 100 global bank stocks can be a useful guide for as the first level filtering. If reader could not find a bank stock of interest under these 7 global exchanges (SGX, Bursa, HKEX, IDX, SET, NYSE, NASDAQ), then may need to deeper analysis before taking any action.

NoBank StocksExchangeROE (%)DY (%)
1DBS Bank (SGX: D05)SGX8.63.1
2OCBC Bank (SGX: O39)SGX7.22.7
3UOB Bank (SGX: U11)SGX6.93.0
4Public Bank (BURSA: 1295)BURSA11.23.1
5BIMB (BURSA: 5258)BURSA10.46.7
6Hong Leong Financial Group (BURSA: 1082)BURSA9.12.2
7Hong Leong Bank (BURSA: 5819)BURSA91.9
8RHB BANK (BURSA: 1066)BURSA7.95.2
9AM BANK (BURSA: 1015)BURSA6.42.4
10MBSB (BURSA: 1171)BURSA64.4
11Affin Bank (BURSA: 5185)BURSA3.83.9
12CIMB Bank (BURSA: 1023)BURSA3.32.6
13China Merchants Bank (HKEX: 3968)HKEX142.2
14ICBC Bank (HKEX: 1398)HKEX10.95.3
15China Construction Bank (HKEX: 939)HKEX10.65.4
16Bank of China Hong Kong (HKEX: 2388)HKEX10.65.1
17Hang Seng Bank (HKEX: 11)HKEX9.33.6
18Bank of Communications (HKEX: 3328)HKEX97.5
19Chong Hing Bank (HKEX: 1111)HKEX7.35.2
20Dah Sing Banking Group (HKEX: 2356)HKEX6.54.9
21Dah Sing (HKEX: 440)HKEX55.2
22Bank of East Asia (HKEX: 23)HKEX2.92.4
23Bank Mega (IDX: MEGA)IDX16.53.2
24Bank Central Asia (IDX: BBCA)IDX14.71.6
25Bank Woori Saudara Indonesia 1906 (IDX: SDRA)IDX6.91.6
26Bank Bumi Arta (IDX: BNBA)IDX30.2
27Bank of Ayudhya (SET: BAY)SET80.9
28Kasikornbank (SET: KBANK)SET6.73.6
29Bangkok Bank (SET: BBL)SET3.82.0
30HDFC Bank (NYSE: HDB)NYSE15.10.1
31Western Alliance Bancorporation (NYSE: WAL)NYSE14.81.0
32Toronto-Dominion Bank (NYSE: TD)NYSE12.53.6
33Royal Bank of Canada (NYSE: RY)NYSE12.33.5
34Bank of Hawaii (NYSE: BOH)NYSE11.22.8
35Canadian Imperial Bank of Commerce (NYSE: CM)NYSE104.3
36JP Morgan Chase (NYSE: JPM)NYSE9.82.3
37Bank of Nova Scotia (NYSE: BNS)NYSE9.24.3
38Bank of Montreal (NYSE: BMO)NYSE9.13.6
39U.S. Bancorp (NYSE: USB)NYSE8.73.0
40Prosperity Bancshares (NYSE: PB)NYSE8.62.4
41Community Bank System (NYSE: CBU)NYSE7.82.1
42Cullen/Frost Bankers (NYSE: CFR)NYSE7.52.4
43PNC Financial Services (NYSE: PNC)NYSE5.92.6
44Sterling Bancorp (NYSE: STL)NYSE4.71.1
45Credicorp (NYSE: BAP)NYSE35.9
46Northrim BanCorp (NASDAQ: NRIM)NASDAQ14.83.1
47Summit State Bank (NASDAQ: SSBI)NASDAQ13.92.8
48Meta Financial Group (NASDAQ: CASH)NASDAQ13.80.4
49Stock Yards Bancorp (NASDAQ: SYBT)NASDAQ13.42.1
50Washington Trust Bancorp (NASDAQ: WASH)NASDAQ13.13.8
51Lakeland Financial Corporation (NASDAQ: LKFN)NASDAQ12.81.7
52City Holding Company (NASDAQ: CHCO)NASDAQ12.72.7
53Arrow Financial Corporation (NASDAQ: AROW)NASDAQ12.23.0
54First Bancorp (NASDAQ: FNLC)NASDAQ12.14.1
55First Financial Bankshares (NASDAQ: FFIN)NASDAQ121.0
56C&F Financial Corp (NASDAQ: CFFI)NASDAQ11.53.1
57Glacier Bancorp (NASDAQ: GBCI)NASDAQ11.52.2
58Century Bancorp (NASDAQ: CNBKA)NASDAQ11.40.5
59First Citizens BancShares (NASDAQ: FCNCA)NASDAQ11.30.2
60Camden National Corporation (NASDAQ: CAC)NASDAQ11.22.8
61East West Bancorp (NASDAQ: EWBC)NASDAQ10.81.4
62Eagle Bancorp (NASDAQ: EGBN)NASDAQ10.71.6
63Republic Bancorp (NASDAQ: RBCAA)NASDAQ10.12.5
64Commerce Bancshares (NASDAQ: CBSH)NASDAQ101.3
65German American Bancorp (NASDAQ: GABC)NASDAQ101.6
66Ameris Bancorp (NASDAQ: ABCB)NASDAQ9.91.1
67Horizon Bancorp (NASDAQ: HBNC)NASDAQ9.92.5
68UMB Financial Corp (NASDAQ: UMBF)NASDAQ9.51.3
69Enterprise Bancorp (NASDAQ: EBTC)NASDAQ9.42.1
70Southside Bancshares (NASDAQ: SBSI)NASDAQ9.43.3
71Penns Woods Bancorp (NASDAQ: PWOD)NASDAQ9.35.2
72BancFirst Corporation (NASDAQ: BANF)NASDAQ9.31.8
73Community Bankers Trust (NASDAQ: ESXB)NASDAQ9.22.4
741st Source Corporation (NASDAQ: SRCE)NASDAQ9.12.3
75Community Trust Bancorp (NASDAQ: CTBI)NASDAQ9.13.3
76Signature Bank (NASDAQ: SBNY)NASDAQ9.10.9
77American National BankShares (NASDAQ: AMNB)NASDAQ8.93.1
78First Internet Bancorp (NASDAQ: INBK)NASDAQ8.90.6
79NBT Bancorp (NASDAQ: NBTB)NASDAQ92.6
80CVB Financial Corp (NASDAQ: CVBF)NASDAQ8.83.0
81Simmons First National Corporation (NASDAQ: SFNC)NASDAQ8.62.2
82TowneBank (NASDAQ: TOWN)NASDAQ8.22.3
83BOK Financial Corporation (NASDAQ: BOKF)NASDAQ8.22.1
84Home Bancshares (NASDAQ: HOMB)NASDAQ8.21.9
85International Bancshares (NASDAQ: IBOC)NASDAQ82.2
86ConnectOne Bancorp (NASDAQ: CNOB)NASDAQ7.81.4
87CNB Financial Corp (NASDAQ: CCNE)NASDAQ7.62.7
88Independent Bank Corp (NASDAQ: INDB)NASDAQ7.12.0
89TriCo Bancshares (NASDAQ: TCBK)NASDAQ71.7
90People’s United Financial (NASDAQ: PBCT)NASDAQ74.0
91Enterprise Financial Services Corp (NASDAQ: EFSC)NASDAQ71.5
92Wintrust Financial Corp (NASDAQ: WTFC)NASDAQ6.61.4
93Columbia Banking System (NASDAQ: COLB)NASDAQ6.62.8
94Heartland Financial USA (NASDAQ: HTLF)NASDAQ6.41.5
95Pinnacle Financial Partners (NASDAQ: PNFP)NASDAQ6.20.7
96Flushing Financial Corporation (NASDAQ: FFIC)NASDAQ5.63.4
97Bryn Mawr Bank Corp (NASDAQ: BMTC)NASDAQ5.22.2
98Renasant Corp (NASDAQ: RNST)NASDAQ3.92.0
99South State Corp (NASDAQ: SSB)NASDAQ2.62.2
100Pacific Premier Bancorp (NASDAQ: PPBI)NASDAQ2.22.3

Here, let’s focus on 10 Global Giant Bank Stocks in 4 different countries (Singapore, Malaysia, Hong Hong / China, USA), learning the unique positioning for each stock:

1) Singapore Giant Bank Stocks:

– DBS Bank (SGX: D05), OCBC Bank (SGX: O39), UOB Bank (SGX: U11)

There are only 3 major banks in Singapore after past few decades of merging and acquisition with strict regulations by MAS to ensure stable financial conditions (eg. regulation of limiting FY2020 dividend payment to 60% of previous year to preserve cash during pandemic). So, it is not surprise that all 3 Singapore bank stocks (DBS Bank, OCBC Bank and UOB Bank) are all giant stocks.

Despite weaker business with higher Non-Performing Loan (NPL) and lower interest income (lower interest rate with lower Net Interest Margin, NIM), all 3 major Singapore bank stocks remain profitable, worst time of Q2/2020 is over, recovering steadily each quarter, supporting their share prices to recover from lower optimism level.

Currently, DBS Bank share price is at moderate high optimism of 60+% Ein55 Optimism level, over intrinsic value of $22.  Therefore, DBS is more suitable for shorter term trading (Buy Low Sell High / Buy High Sell Higher). For trading, it is crucial to have S.E.T. (Stop Loss / Entry / Target Prices) in trading plan. For example, if the prices fall back below the support (was resistance) of $27, then a short term trader may need to exit, even with losses, if breakout strategy is the main assumption for trading strategy.

For both OCBC Bank and UOB Bank, share prices have recovered from low optimism to mid optimism of nearly 50%, near to intrinsic values of $12 (OCBC) and $26 (UOB) respectively. It is possible for share prices to go above intrinsic value but it requires a more greedy stock market emotion in Singapore (eg. when STI is above 3000-3300 long term resistance zone). Therefore, cyclic investing strategies (Buy Low Sell High / Buy Fair Price Sell High) may be considered for both stocks.

Readers may refer to earlier article of Dr Tee for more details on 30 Singapore Banking & Finance stocks, mostly were at lower optimism level (9 months ago, just recovering from the worst time of pandemic, congratulation to readers who have taken action to Buy Low after reading this article):
https://www.ein55.com/2020/06/30-singapore-banking-and-finance-stocks/

2) Malaysia Giant Bank Stocks:

Public Bank (Bursa: 1295), Hong Leong Bank (Bursa: 5819), CIMB Bank (Bursa: 1023)

There are more banks in Malaysia than in Singapore, therefore careful selection of giant bank stocks is crucial for Malaysian stock investors.  Public Bank (Teh Hong Piow) and Hong Leong Bank (Quek Leng Chan) are excellent private banks founded and managed by reputable bankers, surviving through past few decades of merging and acquisition of Malaysian banks.

Fundamentally, both Public Bank and Hong Leong Bank are relatively stronger than the peers of other Malaysia banks. Public Bank has just recovered above low optimism to about 30% level, aiming for RM6 intrinsic value, may be considered for cyclic investing.  As for Hong Leong Bank, recovery is much stronger to mid optimism level with intrinsic value of RM19, more suitable for medium term trend-following trading.

CIMB is the second largest bank in Malaysia but performance is better than the largest bank, Maybank. CIMB is a more cyclical stock, share prices is recovering from very low optimism, currently still around 20% level, having higher upside potential. An investor may apply cyclic investing strategy, target for CIMB could be intrinsic value of RM7 or even higher if the Bursa stock market becomes more greedy, then there is opportunity to sell at high optimism level.

Readers may read articles of Dr Tee for more details on Public Bank and Hong Leong Bank, both were at lower optimism level then (ample time to Buy Low if one could take action):
https://www.ein55.com/tag/public-bank/

3) Hong Kong / China Giant Bank Stocks:

– Bank of China Hong Kong (HKEX: 2388), China Construction Bank (HKEX: 939)

Many China bank stocks are also listed in Hong Kong stock market (H-share), including Bank of China Hong Kong and China Construction Bank, both are fundamentally strong with high growth potential.  Hong Kong stock exchange is tighter in regulation, therefore some investors may feel more confident investing China stocks through Hong Kong, especially for state-owned giant stocks with additional protection by China government.

Bank of China Hong Kong (HKEX: 2388) is a different stock from parent company, Bank of China (HKEX: 3988). Performance of BOC Hong Kong (limited to BOC entities in Hong Kong) is stronger than parent stock, therefore a better choice for growth investing (comparable for both stocks if only considering dividend investing), aiming for higher capital gains. BOC Hong Kong has recovered from past 1 year of low optimism level, breaking above the HK$25 resistance, challenging other higher price level, optimism is still moderate low above 30%, aiming for intrinsic value of HK$38. BOC Hong Kong is a multi-purpose stock, suitable as defender (dividend stock with 5% dividend yield, much better than 0.5% interest if keeping cash in a bank), midfielder (capital gains and dividend) and even a striker (uptrend price for short term with trend-following trading).

China Construction Bank (CCB) is recovering from low optimism during pandemic, currently at Ein55 Optimism of 40%, not far from intrinsic value of HK$8. With strong economy recovery in China in later stage of pandemic, CCB would benefit in near future for businesses, which could support the share prices further.

Readers may read another article of Dr Tee for more details on another Hong Kong / China giant bank stock: ICBC Bank (world and China largest bank):
https://www.ein55.com/2020/12/4-global-bank-stocks-with-vaccine-after-phase-3-covid-19/

4) US Giant Bank Stocks:

JP Morgan Chase (NYSE: JPM), HDFC Bank (NYSE: HDB)

JP Morgan Chase is the largest bank in USA while HDFC Bank is the largest private bank in India (stock is also listed in NYSE), both are growth stocks, fundamentally strong, supported by growing economy in respective local countries.

JP Morgan share prices recover from correction at mid optimism level in pandemic, currently at high optimism level of over 70%, much higher than its intrinsic value of US$100, driven by the greedy emotion in US stock market.  JPM is more suitable for trend-following trading, buying after recovering from each short term correction, or after breaking each intermediate resistance for momentum trading. Since US stock market (both NYSE and NASDAQ) at high optimism level is very volatile, a trader needs to assess own risk tolerance level, choosing the right stocks for trading.

HDFC Bank is relatively more undervalue than JPM. Optimism of HDFC is recovering from low level in pandemic to mid optimism of about 40% currently, near to intrinsic value of US$90. With higher populations in India for decades (would takeover China as No 1 country with the most population in about 10 years time), HDFC Bank would benefit in future businesses, especially after pandemic has ended in India.  Besides growth investing, HDFC may also be considered for medium term or short term momentum trading with different price targets based on traders unique personalities.

Readers may view recent video by Dr Tee for more details on HDFC Bank (price was 10% lower then):
https://www.ein55.com/2021/01/6-crisis-investing-momentum-stocks-with-life-changing-20-minutes-talk/

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We may not need to be a banker to enjoy the economic moat of a bank with financial license authorized by each government. An investor could leverage on global giant stocks to make money together in countries with growing economy.  All sectors and levels (from individual to country, 大小通吃) need liquidity or cash supplied by bank, therefore investing in a giant bank would have higher probability of winning in higher share prices with consistent dividend payment, supported by growing businesses.

Instead of keeping hard earn money as cash deposit (earning less than 0.5% interest) in a trusted bank, why not taking calculated risk, investing in a portfolio of giant bank stocks with higher potential return in medium to long term (with possible capital loss in short term, especially when entry against the trend)? If a bank is not safe for investment, then it may not be safe for keeping one’s cash in saving account. Instead of lending money with ultra-low interest rate to a bank, one may make money together with a giant bank through stock ownership to share the profits.

Earlier readers of Dr Tee network who took action on a portfolio of giant stocks (not limited to bank stocks) aligned with own personalities could enjoy significant return after 6-12 months later, especially during pandemic period. Reading article is only a “knowledge collector”. An investor needs to learn to convert knowledge into potential fortune through action taking (Buy / Hold / Sell / Wait / Shorting). If not, after reading over 100 articles or other people opinions, the results would still be zero if no action is taken.

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There are over 1500 giant stocks in the world based on Dr Tee criteria, choice of 10 Dream Team giant stocks have to align with one’s unique personality, eg. for shorter term trading (eg. momentum or swing trading) or longer term investing (cyclic investing, undervalue investing or growth investing). Readers should not just “copy and paste” any stock (What to Buy, When to Buy/Sell) as successful action taking requires deeper consideration (LOFTP strategies – Level / Optimism / Fundamental / Technical / Personal Analysis) which you could learn further from Dr Tee Free 4-hr Webinar.

Drop by Dr Tee free 4hr webinar (learning at comfort of home with Zoom) to learn how to position in global giant stocks during COVID-19 stock crisis with 10 unique stock investing strategies, knowing What to Buy, When to Buy/Sell.

Zoom will be started 30 min before event, bonus talk (Q&A on any investment topics from readers) for early birds. There are many topics we will cover in this 4hr webinar, Dr Tee can have more time for Q&A if you could stay later after the webinar, you could ask on any global and local stocks including but not limited to 30 STI component stocks:

Ascendas Reit (SGX: A17U), CapitaLand (SGX: C31), CapitaLand Integrated Commercial Trust (SGX: C38U), City Development (SGX: C09), ComfortDelGro (SGX: C52), Dairy Farm International (SGX: D01), DBS Bank (SGX: D05), Genting Singapore (SGX: G13), Hongkong Land (SGX: H78), Jardine Cycle & Carriage (SGX: C07), Jardine Matheson Holdings JMH (SGX: J36), Jardine Strategic Holdings JSH (SGX: J37), Keppel Corp (SGX: BN4), Keppel DC Reit (SGX: AJBU), Mapletree Commercial Trust (SGX: N2IU), Mapletree Industrial Trust (SGX: ME8U), Mapletree Logistics Trust (SGX: M44U), OCBC Bank (SGX: O39), SATS (SGX: S58), Sembcorp Industries (SGX: U96), Singapore Airlines (SGX: C6L), Singapore Exchange (SGX: S68), Singtel (SGX: Z74), ST Engineering (SGX: S63), Thai Beverage (SGX: Y92), UOB Bank (SGX: U11), UOL (SGX: U14), Venture Corporation (SGX: V03), Wilmar International (SGX: F34), YZJ Shipbldg SGD (SGX: BS6).

Dr Tee will cover over 20 case studies, Singapore giant stocks, eg. CapitaLand Mall Trust (SGX: C38U), Singapore Exchange (SGX: S68), Keppel Corp (SGX: BN4), Top Glove (SGX: BVA), Jardine Matheson Holdings JMH (SGX: J36), Vicom (SGX: WJP) and many others, Malaysia giant stocks, Hong Kong giant stocks and US giant stocks, both long term investing and short term trading.

There are limited tickets left for this 4hr free webinar, please ensure 100% you could join when register: www.ein55.com

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88 Singapore 10X Growth Stocks for Bullish New Year (招财牛年)

A daydream of an investor may be to become 10X richer in this New Year, similar to bullish 10X Stocks such as IFAST and Tesla over the past 1 year.  This dream could be realized one day but patience is required with strategies aligned with own personality.

In this article, you will learn from Dr Tee on 88 Growth Stocks in Singapore, some may be considered for longer term investing and / or short term trading with COVID-19 recovery stock rally. Bonus for readers who could read every words of the entire article, learning unique strategy to position in 6 giant growth stocks and also generalized strategy, applicable for all growth stocks including speculative growing Bitcoin.

1) Growth Small Cap Stock: IFAST Corporation (SGX: AIY)

2) Growth Technology Stock: AEM Holdings (SGX: AWX)

3) Growth Healthcare Stock: Top Glove Corporation (SGX: BVA / Bursa: 7113)

4) Growth Commodity Stock: Wilmar International (SGX: F34)

5) Growth REIT: Keppel DC REIT (SGX: AJBU)

6) Growth Bank Stock: DBS Bank (SGX: D05)

Economy for Year 2020 of pandemic is the worst of past few decades, therefore naturally New Year 2021 would have very high probability of stronger economy which could support the stock market.  This is especially true for growth stocks with growing businesses, especially for sectors benefiting from COVID-19.  Most investors may consider US growth stocks but there are actually growth stocks in each country including Singapore but requires more careful selection.

From the table sorted below for 88 growth stocks in Singapore, each has growing businesses over the past few years with ROE (Return on Equity) over 5%.  However, a growing business in the past may not be sustainable during COVID-19 period, could end up as a crisis stock. Fundamental Analysis alone is not sufficient, a growing business may not be a giant stock as share price could be undervalue (eg. IFAST over 1 year ago). Therefore, deeper analysis is required with LOFTP (Level, Optimism, Fundamental, Technical, Personal Analysis) Strategies.

NoGrowth StockROE (%)
1AEM Holdings (SGX: AWX)39.277 – 46.127
2AF Global (SGX: L38)7.546 – 7.835
3ARA LOGOS Logistics Trust (SGX: K2LU)5.77
4Avarga (SGX: U09)10.909 – 16.183
5Best World International (SGX: CGN)33.312 – 37.565
6BRC Asia (SGX: BEC)7.69
7Bukit Sembawang Estates (SGX: B61)5.748 – 6.071
8CapitaLand (SGX: C31)5.677 – 9.144
9Centurion Corp (SGX: OU8)16.878 – 17.312
10Challenger Technologies (SGX: 573)19.20
11China Aviation Oil (Singapore) (SGX: G92)8.122 – 11.956
12China Everbright Water (SGX: U9E)8.967 – 9.461
13Civmec (SGX: P9D)6.682 – 8.812
14Cordlife Group (SGX: P8A)5.010 – 5.803
15Cortina Holdings (SGX: C41)14.875 – 16.955
16CSE Global (SGX: 544)13.641 – 15.295
17DBS Bank (SGX: D05)9.22
18Delfi (SGX: P34)10.324 – 12.404
19EC World Reit (SGX: BWCU)6.586 – 9.536
20Excelpoint Technology (SGX: BDF)11.84
21Food Empire Holdings (SGX: F03)12.527 – 12.621
22Fragrance Group (SGX: F31)5.731 – 5.774
23Frencken Group (SGX: E28)13.064 – 14.345
24Fu Yu Corporation (SGX: F13)7.755 – 9.165
25Great Eastern Holding (SGX: G07)9.656 – 11.658
26Hafary Holdings (SGX: 5VS)8.208 – 14.627
27Haw Par Corporation (SGX: H02)5.773 – 6.074
28HC Surgical Specialists (SGX: 1B1)21.486 – 31.730
29Hi-P International (SGX: H17)12.810 – 13.511
30Ho Bee Land (SGX: H13)9.386 – 10.760
31Hong Fok Corporation (SGX: H30)5.472 – 5.646
32IFAST Corporation (SGX: AIY)20.318
33InnoTek (SGX: M14)7.737 – 10.352
34International Cement Group (SGX: KUO)7.670 – 8.169
35IREIT Global (SGX: UD1U)15.614 – 19.447
36ISEC Healthcare (SGX: 40T)7.986 – 11.733
37Jardine Cycle & Carriage (SGX: C07)10.990 – 12.848
38Jason Marine Group (SGX: 5PF)7.956 – 8.800
39JB Foods (SGX: BEW)15.314 – 18.495
40JEP Holdings (SGX: 1J4)10.852 – 12.047
41Keppel DC Reit (SGX: AJBU)8.65
42Kimly (SGX: 1D0)22.89
43LHN (SGX: 41O)19.85
44Lonza Group (SGX: O6Z)12.82
45Mapletree Industrial Trust (SGX: ME8U)9.558 – 10.313
46Mapletree Logistics Trust (SGX: M44U)6.989 – 8.235
47MegaChem (SGX: 5DS)7.744 – 9.044
48Meghmani SDS (SGX: M30)17.027 – 19.670
49Moneymax Financial Services (SGX: 5WJ)10.776 – 13.586
50Moya Holdings Asia (SGX: 5WE)5.802 – 8.681
51Multi-Chem (SGX: AWZ)15.52
52Neo Group (SGX: 5UJ)15.226 – 31.737
53OCBC Bank (SGX: O39)8.285 – 10.663
54Olam International (SGX: O32)9.452 – 10.858
55Overseas Education (SGX: RQ1)5.735 – 6.814
56Pan Hong Holdings Group (SGX: P36)15.439 – 24.742
57Penguin International (SGX: BTM)7.56
58Powermatic Data Systems (SGX: BCY)11.321 – 14.265
59Raffles Infrastructure Holdings (SGX: LUY)13.354 – 17.629
60Riverstone Holdings (SGX: AP4)16.520 – 23.263
61Samurai 2K Aerosol (SGX: 1C3)6.561 – 11.231
62SBS Transit (SGX: S61)13.45
63Singapore Exchange (SGX: S68)37.901 – 39.443
64Sheng Siong Group (SGX: OV8)24.176 – 29.055
65SIIC Environment Holdings (SGX: BHK)6.609 – 7.192
66Sing Holdings (SGX: 5IC)11.425 – 15.352
67Singapore Medical Group (SGX: 5OT)6.984 – 9.360
68Singapore Post (SGX: S08)5.445 – 7.271
69Singapore Shipping Corporation (SGX: S19)10.174 – 11.647
70Sinostar PEC Holdings (SGX: C9Q)13.639 – 14.966
71Singapore Technologies Engineering (SGX: S63)25.387 – 26.007
72The Hour Glass (SGX: AGS)11.168 – 12.532
73Tianjin Zhongxin Pharmaceutical Group (SGX: T14)11.170 – 11.610
74Top Glove Corporation (SGX: BVA)29.64
75UG Healthcare Corporation (SGX: 8K7)25.664 – 53.137
76UMS Holdings (SGX: 558)13.794 – 17.241
77United Global (SGX: 43P)63.059 – 64.360
78UOB Bank (SGX: U11)9.882 – 11.656
79United Overseas Insurance (SGX: U13)7.186 – 9.657
80Valuemax Group (SGX: T6I)11.733 – 11.767
81Valuetronics Holdings (SGX: BN2)13.763 – 14.529
82Venture Corporation (SGX: V03)12.318 – 14.547
83Vicplas International (SGX: 569)8.08
84Wee Hur Holdings (SGX: E3B)8.797 – 9.673
85Wilmar International (SGX: F34)7.716 – 8.887
86Yanlord Land Group (SGX: Z25)9.178 – 11.861
87Yangzijiang Shipbuilding RMB (SGX: SO7)7.549 – 9.986
88Yangzijiang Shipbuilding SGD (SGX: BS6)7.249 – 9.986

Here, let’s focus on 6 Singapore Giant Growth Stocks in 6 different sectors, learning the unique positioning for each stock:

1) Growth Small Cap Stock: IFAST Corporation (SGX: AIY)

A giant stock may not need to be big in size, true for IFAST, a small cap stock. Over the last few years, IFAST price has been around $1/share (see earlier article shared by Dr Tee, IFAST was still at lower price then) while businesses continue to grow each year over the past decade, faster speed during pandemic with support of financial technology initiatives.

Over the last 1 year, IFAST share price has surged from 70+ cents to nearly $7, creating a miracle of 10X stock price, comparable with popular international growth stock such as Tesla.  IFAST has been a hidden gem, a small cap stock, therefore not getting attention of big funds. With more positive corporate news (eg. overseas expansion), driven by market greed (under theme of fintech), supported by more bigger size investors, it is relatively easier to move a small cap stock.

IFAST stock has created record high price every few months, Optimism level is over 90%, therefore some investors are afraid the “bubble” may burst, even it is a fundamentally strong company.  This concern is valid, therefore a safer strategy (applicable for all growth stocks) is to apply trend-following strategy for momentum or swing trading, entering only after recovery from each phase of price correction, ensuring the uptrend prices (higher high, higher low) to support the bull run. Exit depends on own personality, whether longer term investing (business analysis) or shorter term trading (ending of uptrend).

2) Growth Technology Stock: AEM Holdings (SGX: AWX)

Since the dotcom bubble burst in Year 2000, it takes 2 decades for semiconductor sector to rise again. AEM is similar to many semiconductor stocks, cyclical in nature, business could vary from very poor (losses in earlier years) to excellent (over 30% growth in last few years).  Therefore, it is crucial not to position in technology growth stocks for long term, aligning with sector cycle (eg. trade with booming in 5G applications).

Over the last 5 years, AEM share price has surged from 4 cents to over $4, creating a miracle of 100X stock price.  A stock 10X in share price may have potential to become 100X (common in US stock market, especially over a few decades of growth investing) but not many investors have faith to hold (especially during global financial crisis), therefore only gaining a small 10% profit after selling fast. AEM was a small cap stock, similar to IFAST, therefore relatively easier to move in prices, especially when driven by market greed.

AEM stock has created record high price every year with uptrend semiconductor cycle, Optimism level is over 90%, bubble may not burst in short term as semiconductor sector is still bullish, leading by TSMC with record high demand.  Due to high optimism with uptrend prices, AEM may be considered with trend-following trading but a trader has to be prepared for high volatility, strict compliance with S.E.T. (Stop Loss / Entry / Target Prices) trading plan.

3) Growth Healthcare Stock: Top Glove Corporation (SGX: BVA / Bursa: 7113)

Over the past 2 decades, Top Glove (Bursa) has multiplied by 500 times in share prices (aligning with 5 times rise during last 1 year of pandemic). Unlike AEM which business may not be sustainable when cyclic semiconductor bubble is burst one day, Top Glove and other glove giant stocks, eg. Riverstone (SGX: AP4), Hartalega (Bursa: 5168), SuperMax (Bursa: 7106) and Kossan (Bursa: 7153), have sustainable businesses for decades due to rising demand in both healthcare and manufacturing sectors, partly supported by lower material cost (rubber).

With recovery of pandemic, there is a significant sector rotation, stocks benefiting from COVID-19 are under significant price correction, despite the earnings are at historical high with strongest businesses ever.  Fundamental or business sometimes are being used as excuses to buy up certain growth stocks at high prices. When the market greed is diverted to other sector, the share prices are naturally lower. 

Glove stocks including Top Glove are experiencing bearish price trend over the past few months due to sector rotation (changes in target for market greed), prices are corrected significantly but still over 75% Optimism level, may not be suitable for entry due to lack of market speculation (required to sustain higher prices). When these giant glove stocks are falling below intrinsic values or ideally at lower optimism in future stock crisis, it would be good time for long term investing. Currently a better action would be “Wait”.

4) Growth Commodity Stock: Wilmar International (SGX: F34)

Commodity sector (Energy, Agriculture, Precious Metals, etc) has been under low optimism over the past 5 years, recovering gradually over the past 1 year, together with improvement in pandemic condition. So, it is timely to consider commodity stock, aligning to its sector investment clock.

Since Wilmar is listed with RTO in 2006, share price has gone up 10X over the past 2 decades, reflecting the importance of its agriculture products (palm oil, sugar, etc) to modern world with less land for plantations. Wilmar is supported by parent stock PPB (Bursa: 4065) with Kuok Family as sponsor, driven by subsidiary stock, YKA, with bullish 2X prices after recent IPO in China (Shenzhen: 300999).

Commodity has a longer term market cycle but the growth is more moderate (therefore more stable) compared to technology sector (eg. semiconductor / software stocks). Wilmar is near 50% Optimism level of fair value, therefore still reasonable to consider for long term investing or short term trading (supported by uptrend prices, entry after recovery of each price correction).

5) Growth REIT: Keppel DC REIT (SGX: AJBU)

In the internet era with more 5G applications, data usage will be enormous with explosive growth for next decade. So, Keppel DC Reit is positioned nicely to host data storage, collecting consistent growing rental as passive incomes. Keppel DC Reit has 100% business in data center while Mapletree Industrial Trust (SGX: ME8U) has about 1/3 businesses in this growing sector.

Over the past 5 years, Keppel DC Reit has experienced 3X in share prices from $1 to $3 but the gains is not limited share price appreciation. Its dividend is doubled every few years, therefore suitable to position as mid-fielder stock to have a balance of both growth (price appreciation) and dividend (passive income).

After reaching 100% Optimism level during peak of pandemic, Keppel DC Reit has experienced slower growth with sector rotation. The prices (sideways) are not strong enough for shorter term trading and price correction is insufficient for longer term investing (about 75% Optimism).  Therefore, similar to glove stocks, an investor may need to “Wait” for next crisis to Buy Low, or wait for next rally to Buy High (only after uptrend is established for short term).

6) Growth Bank Stock: DBS Bank (SGX: D05)

Bank sector is a key pillar of a nation, not to mention DBS Bank, a leader blue chip stock for decades. The worst time of bank stocks during pandemic is over, record high NPL (Non-Performing Loan) and low interest rate but most global banks including DBS are still profitable.

Unlike other strong growth stocks, DBS is a slower but more steady growth stock. Share prices has gone up 5X in cyclical way over the past decade, it is just a matter of time for the stock to become 10X. Many people want to get rich quick, therefore prefer to buy bullish stock with over 2X potential in less than 1 year but unknowingly exposing to high risk (potential price correction exceeding risk tolerance level), especially for speculative stocks with weaker businesses, driven by market greed.

DBS is at 60% Optimism level, higher than fair value, more suitable for medium term trading but Singapore stock market is lack of speculation due to smaller market size. DBS may also be considered as defender with average 5% dividend yield but it is also cyclical in nature due to interest rate and economic cycles, more suitable to invest after each major stock crisis. DBS is a potential 10X stock but not within 1 year as IFAST, more suitable for longer term market cycle investors. Similar strategy may be applied to OCBC Bank (SGX: O39) and UOB Bank (SGX: U11).

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It is not a daydream to own a 10X stock one day.  The key difference is 10X within 1 year (eg. IFAST) or over decades (eg. Wilmar and DBS).  In short term, stock market behaves like a voting machine, therefore trend-following strategy is crucial to ride the uptrend wave but traders need to overcome greed (to sell high) and fear (to buy low) by following the trading plan strictly. In long term, stock behaves like a weighing machine, therefore fundamental analysis (growing business) with lower optimism undervalue prices would have high probability of winning rate, especially an investor has patience to wait or hold for years, making big money slowly.

This growth investing or trend-following trading strategies may be applied for Bitcoin or other growth / momentum stocks. Unlike growth stocks, Bitcoin (half commodity / half forex) has no business fundamental, therefore some investors may view Bitcoin as speculation. However, value could be derived from prices, as long as there are believers (actual trades of buy and sell), value could be created with Bitcoin remains limited in number (demand more than supply). Similar to gold or land with limited supply, Bitcoin becomes rare, harder to explore new supply in future, main variable will be demand which can be market greed driven.

With more acceptance of Bitcoin as “currency” in real world and support of big funds, Bitcoin has partial quality of growth investing. However, due to the unpredictable nature of technology (eg. safe storage of Bitcoin), it is more suitable as small capital investment. Even Bitcoin has 10X potential after reaching historical high of US$50,000 (over 60% Optimism level), it is volatile and speculative in nature, less than 5% of capital may be considered. Bitcoin has become speculative tools of big players, may not be suitable for retail traders with little capital. Similarly, trend-following strategy (entry after recovery from correction) may be applied for speculative trading. Of course, an investor has a choice to ignore Bitcoin, especially there are so many global and local growth stocks with real businesses.

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There are over 1500 giant stocks in the world based on Dr Tee criteria, choice of 10 Dream Team giant stocks have to align with one’s unique personality, eg. for shorter term trading (eg. momentum or swing trading) or longer term investing (cyclic investing, undervalue investing or growth investing). Readers should not just “copy and paste” any stock (What to Buy, When to Buy/Sell) as successful action taking requires deeper consideration (LOFTP strategies – Level / Optimism / Fundamental / Technical / Personal Analysis) which you could learn further from Dr Tee Free 4-hr Webinar.

Drop by Dr Tee free 4hr webinar (learning at comfort of home with Zoom) to learn how to position in global giant stocks during COVID-19 stock crisis with 10 unique stock investing strategies, knowing What to Buy, When to Buy/Sell.

Zoom will be started 30 min before event, bonus talk (Q&A on any investment topics from readers) for early birds. There are many topics we will cover in this 4hr webinar, Dr Tee can have more time for Q&A if you could stay later after the webinar, you could ask on any global and local stocks including but not limited to 30 STI component stocks:

Ascendas Reit (SGX: A17U), CapitaLand (SGX: C31), CapitaLand Integrated Commercial Trust (SGX: C38U), City Development (SGX: C09), ComfortDelGro (SGX: C52), Dairy Farm International (SGX: D01), DBS Bank (SGX: D05), Genting Singapore (SGX: G13), Hongkong Land (SGX: H78), Jardine Cycle & Carriage (SGX: C07), Jardine Matheson Holdings JMH (SGX: J36), Jardine Strategic Holdings JSH (SGX: J37), Keppel Corp (SGX: BN4), Keppel DC Reit (SGX: AJBU), Mapletree Commercial Trust (SGX: N2IU), Mapletree Industrial Trust (SGX: ME8U), Mapletree Logistics Trust (SGX: M44U), OCBC Bank (SGX: O39), SATS (SGX: S58), Sembcorp Industries (SGX: U96), Singapore Airlines (SGX: C6L), Singapore Exchange (SGX: S68), Singtel (SGX: Z74), ST Engineering (SGX: S63), Thai Beverage (SGX: Y92), UOB Bank (SGX: U11), UOL (SGX: U14), Venture Corporation (SGX: V03), Wilmar International (SGX: F34), YZJ Shipbldg SGD (SGX: BS6).

Dr Tee will cover over 20 case studies, Singapore giant stocks, eg. CapitaLand Mall Trust (SGX: C38U), Singapore Exchange (SGX: S68), Keppel Corp (SGX: BN4), Top Glove (SGX: BVA), Jardine Matheson Holdings JMH (SGX: J36), Vicom (SGX: WJP) and many others, Malaysia giant stocks, Hong Kong giant stocks and US giant stocks, both long term investing and short term trading.

There are limited tickets left for this 4hr free webinar, please ensure 100% you could join when register: www.ein55.com

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6 Wee Cho Yaw Singapore Giant Stocks (光宗耀祖)

Mr Wee Cho Yaw (黄祖耀) is the Top 10 richest person in Singapore for decades.  An easy way of being rich is to be a long term business partner of these proven rich people through stock investing, ideally entering during COVID-19 stock crisis with discounted prices.

In this article, you will learn from Dr Tee on 6 Wee Chow Yaw Family Giant Stocks in Singapore for longer term investing with COVID-19 recovery stock rally. Bonus for readers who could read every words of the entire article, learning unique strategy to position in each Wee family stocks. This investing strategy may be extended to any Top 10 richest person in any country.

1) UOB Bank (SGX: U11)

2) UOB Kay Hian (SGX: U10)

3) UOI (United Overseas Insurance) (SGX: U13)

4) UOL Group (SGX: U14)

5) UIC (United Industrial Corporation) (SGX: U06)

6) Haw Par Corporation (SGX: H02)

Wee Cho Yaw is the second generation of Wee Family, succeeding the bank business from his father (Wee Kheng Chiang), expanding the UOB Bank with multiple acquisitions of other banks (defeating DBS to acquire OUB Bank), becoming the third largest bank in Singapore.  Wee Cho Yaw has retired (91 years old but still engaging actively in businesses), distributing the family businesses to the third generation, 3 sons: Wee Ee Chong, Wee Ee Lim, Wee Ee Chao.

Unlike Chinese saying of “wealth does not last over 3 generations” (富不过三代) or English saying of “clogs to clogs is only three generations”, Wee Family has been training family members to be management since young, not simply inheriting the wealth.  As long as management is performing (regardless operated by family or external talent), giant stocks supported by strong businesses will continue to grow.

There are 30 STI index component stocks including Wee Cho Yaw Family giant stocks of UOB and UOL. Wee Cho Yaw has established an empire of businesses with 6 giant stocks over 3 key sectors in Singapore: Banking & Finance (UOB, UOB Kay Hian and UOI), Property (UOL and UIC) and Healthcare (Haw Par). Each of the 6 stocks is connected by a network of cross-shareholding structure (read past article by Dr Tee for details) with near simple majority (eg. A owns B & C, while B owns A & D, etc).

This is an efficient way to expand the businesses with limited capital in the early time but having potential risk of weaker control in overall shares ownership when there is a strong competitor.  In more recent years, instead of more acquisition of new businesses, Wee Cho Yaw family has been focusing on strengthening the control of these core businesses with more shareholding (eg. buying more shares of UOL, Haw Par, etc), establishing a more stable business structure for the third and future generations.

Let’s learn from Dr Tee on how to position in these 6 Wee Cho Yaw stocks over 3 promising sectors in Singapore, especially during COVID-19 stock crisis recovery rally:

1) Singapore Banking & Finance Giant Stocks

1.1) UOB Bank (SGX: U11)

Business performance of UOB Bank is aligned with other 2 major banks in Singapore, DBS Bank and OCBC Bank. In general, global and Singapore banks are at its low tide of business with higher NPL (Non-Performing Loan) during pandemic and lower interest income due to low bank interest rates globally.

UOB Bank stock is recovering steadily from low optimism during pandemic, currently about 41% optimism, still having discount in share prices. UOB is a moderate growth stock, suitable with Buy Low & Hold long term strategy.  In normal time (without MAS cap of 60% dividend payment), UOB stock investor could receive 5-6% stable dividend yield (depending on entry price), suitable for long term investing with Mr Wee Chow Yaw family (strong sponsor) core business.

Therefore, it may be smarter to be an UOB bank stock investor (sharing 5-6% dividend yield and potential capital gains) than being a client of UOB with cash deposit for long term (contributing cheap loan with less than 0.5% interest for UOB to invest or expand business).

1.2) UOB Kay Hian (SGX: U10)

Business performance of UOB Kay Hian is relatively weaker than other Wee family stocks in longer term, mainly due to stagnant and smaller Singapore stock market, resulting in less profits for stock brokerage business. However, during COVID-19 stock crisis, stock trading volume has increased for local and global stocks, therefore UOB Kay Hian is gaining momentum in both business and share price.

UOB Kay Hian stock is recovering from low optimism during pandemic, currently about 35% optimism, having higher potential in medium term share prices with more active traders who buy or sell local and global stocks. UOB Kay Hian is a cyclic stock, suitable with Buy Low & Sell High in medium term strategy, growing together in bullish stock market with pandemic recovery rally.

1.3) UOI (United Overseas Insurance) (SGX: U13)

Business performance of UOI (United Overseas Insurance) is relatively more stable in longer term (not much affected during COVID-19), mainly due to defensive nature of insurance industry (leveraging on probability of nature to make profits with calculated risks, diversifying over a large number of populations or policies).

UOI stock is corrected relatively less than other Wee family stocks during pandemic, currently near fair price of about 58% optimism, having lower potential in long term due to less discount in share prices. UOI may be considered for medium term cyclic trading with Buy Low Sell High strategy but it may not be as exciting as other Wee family stocks for short term traders.

There are 30 Banking & Finance Stocks in Singapore including UOB Bank, UOI and UOB Kay Hian (investor has to focus only on giant stocks for investing):

AMTD IB OV (SGX: HKB), B&M Hldg (SGX: CJN), DBS Bank (SGX: D05), Edition (SGX: 5HG), G K Goh (SGX: G41), Global Investment (SGX: B73), Great Eastern (SGX: G07), Hong Leong Finance (SGX: S41), Hotung Investment (SGX: BLS), IFAST Corporation (SGX: AIY), IFS Capital (SGX: I49), Intraco (SGX: I06), Maxi-Cash Finance (SGX: 5UF), MoneyMax Finance (SGX: 5WJ), Net Pacific Finance (SGX: 5QY), OCBC Bank (SGX: O39), Pacific Century (SGX: P15), Prudential USD (SGX: K6S), Singapore Exchange (SGX: S68), SHS (SGX: 566), Sing Investments & Finance (SGX: S35), Singapore Reinsurance (SGX: S49), Singapura Finance (SGX: S23), TIH (SGX: T55), Uni-Asia Group (SGX: CHJ), UOB Bank (SGX: U11), UOB-KAY HIAN HOLDINGS (SGX: U10), UOI (SGX: U13), ValueMax (SGX: T6I), Vibrant Group (SGX: BIP).

2) Singapore Property Giant Stocks

2.1) UOL Group (SGX: U14)

2.2) UIC (United Industrial Corporation) (SGX: U06)

Business performances of UOL and UIC (United Industrial Corporation) are aligned with other major Singapore property stocks (eg. CapitaLand, City Development, Hongkong Land, etc). In general, global and Singapore property prices are relatively stable during pandemic, partly due to low mortgage rate and slower response in property market (comparing to panic sell within weeks by global stock investors during early phase of pandemic in Mar 2020).  However, due to circuit breaker in Singapore and global lock down globally in Q2/2020, property businesses are still affected.

With recovery of local and global economy, both UOL and UIC are expected to gain more momentum in property market. Both stocks of UOL and UIC are recovering steadily from low optimism during pandemic, currently about 35% optimism (UOL) and 7% Optimism (UIC) respectively. UIC has more discount in share prices than UOL (over 50% discount with price-to-book ratio = 0.46 for UIC).

UOL is a growth stock, more suitable with Buy Low & Hold long term strategy.  UIC is a cyclic stock, more suitable with Buy Low & Sell High in medium term strategy. Both UOL and UIC could pay moderate dividend yield of nearly 2% (more than bank interest of 0.5%), suitable for positioning as midfielders for both capital gains in share prices appreciation and moderate passive income with stable dividend.

There are 140 Property Stocks in Singapore including UOL and UIC (investor has to focus only on giant stocks for investing):

3Cnergy (SGX: 502), A-Smart (SGX: BQC), AEI^ (SGX: AWG), AIMS Property (SGX: BVP), APAC Realty (SGX: CLN), Abterra (SGX: L5I), Acromec (SGX: 43F), Amara (SGX: A34), Amcorp Global (SGX: S9B), AnnAik (SGX: A52), Astaka (SGX: 42S), BBR (SGX: KJ5), BRC Asia (SGX: BEC), BlackGoldNatural (SGX: 41H), Boldtek (SGX: 5VI), Bonvests (SGX: B28), Boustead (SGX: F9D), Boustead Projects (SGX: AVM), Bukit Sembawang (SGX: B61), Bund Center (SGX: BTE), CSC (SGX: C06), CapitaLand (SGX: C31), Casa (SGX: C04), Chemical Industries (SGX: C05), China Great Land (SGX: D50), China International (SGX: BEH), China Real Estate (SGX: 5RA), China Yuanbang (SGX: BCD), Chip Eng Seng (SGX: C29), City Development (SGX: C09), DISA (SGX: 532), Debao Property (SGX: BTF), ETC Singapore (SGX: 1C0), Edition (SGX: 5HG), EnGro Corporation (SGX: S44), Fraser and Neave F&N (SGX: F99), Far East Orchard (SGX: O10), Figtree (SGX: 5F4), First Sponsor (SGX: ADN), Fragrance (SGX: F31), Frasers Property (SGX: TQ5), GYP Properties (SGX: AWS), Gallant Venture (SGX: 5IG), Golden Energy (SGX: AUE), Goodland (SGX: 5PC), GuocoLand (SGX: F17), HL Global Enterprises (SGX: AVX), Hatten Land (SGX: PH0), Heeton (SGX: 5DP), Hiap Hoe (SGX: 5JK), Hiap Seng (SGX: 510), Ho Bee Land (SGX: H13), Hock Lian Seng (SGX: J2T), Hong Fok (SGX: H30), Hong Lai Huat (SGX: CTO), Hong Leong Asia (SGX: H22), Hongkong Land USD (SGX: H78), Hor Kew (SGX: BBP), Huationg Global (SGX: 41B), Hwa Hong (SGX: H19), IPC Corp (SGX: AZA), ISOTeam (SGX: 5WF), Imperium Crown (SGX: 5HT), Jasper Investments (SGX: FQ7), KOP (SGX: 5I1), KSH (SGX: ER0), Keong Hong (SGX: 5TT), Keppel Corp (SGX: BN4), Keppel Reit (SGX: K71U), King Wan (SGX: 554), Koh Brothers (SGX: K75), Koon (SGX: 5DL), Kori (SGX: 5VC), LHN (SGX: 41O), Ley Choon (SGX: Q0X), Lian Beng (SGX: L03), Low Keng Huat (SGX: F1E), Lum Chang (SGX: L19), MMP Resources (SGX: F3V), MYP (SGX: F86), Metro (SGX: M01), OIO (SGX: KUX), OKH Global (SGX: S3N), OKP (SGX: 5CF), OneApex (SGX: 5SY), Oxley (SGX: 5UX), PSL (SGX: BLL), Pacific Century (SGX: P15), Pacific Star Development (SGX: 1C5), Pan Hong (SGX: P36), Pavillon (SGX: 596), Perennial Holdings (SGX: 40S), Pollux Properties (SGX: 5AE), PropNex (SGX: OYY), Raffles Infrastructure (SGX: LUY), Regal International (SGX: UV1), Renaissance United (SGX: I11), Rich Capital (SGX: 5G4), Roxy-Pacific (SGX: E8Z), Ryobi Kiso (SGX: BDN), SHS (SGX: 566), SLB Development (SGX: 1J0), SP Corporation (SGX: AWE), Sasseur Reit (SGX: CRPU), Second Chance (SGX: 528), Sin Heng Mach (SGX: BKA), Sinarmas Land (SGX: A26), SingHaiyi (SGX: 5H0), SingHoldings (SGX: 5IC), Singapore-eDev (SGX: 40V), Sinjia Land (SGX: 5HH), Soilbuild Construction Group (SGX: S7P), Starland (SGX: 5UA), Straits Trading (SGX: S20), Swee Hong (SGX: QF6), Sysma (SGX: 5UO), TA (SGX: PA3), TTJ (SGX: K1Q), Tai Sin Electric (SGX: 500), Thakral (SGX: AWI), Thomson Medical Group (SGX: A50), Tiong Seng (SGX: BFI), Top Global (SGX: BHO), Tosei (SGX: S2D), Transcorp (SGX: T19), Tritech (SGX: 5G9), UIC (SGX: U06), UOA (SGX: EH5), UOL (SGX: U14), USP Group (SGX: BRS), Vibrant Group (SGX: BIP), Wee Hur (SGX: E3B), Wing Tai (SGX: W05), Yanlord Land (SGX: Z25), Yeo Hiap Seng (SGX: Y03), Ying Li International (SGX: 5DM), Yoma Strategic (SGX: Z59), Yongmao (SGX: BKX), Yongnam (SGX: AXB), Yorkshine (SGX: MR8).

3) Singapore Healthcare Giant Stock

– Haw Par Corporation (SGX: H02)

Business performance of Haw Par is relatively stronger in long term than other Wee family stocks, partly due to defensive growing healthcare sector.  In fact, over 70% revenue of Haw Par is from investing in other 2 Wee family stocks of UOB Bank (3% share) and UOL (8% share) due to the unique cross-holding structure of 6 Wee Cho Yaw stocks.  The hidden valuable assets of Haw Par (through ownership of UOB and UOL) could already justify for the current Haw Par share prices, therefore the healthcare business (eg. tiger balm medical products) is an added bonus for Haw Par stock investors who indirectly also own UOB and UOL stocks.

Haw Par is a strong growth stock, price corrected relatively less than other Wee family stocks during pandemic, currently share price recovers to 43% optimism, near to fair value with some discounts. Potential of Haw Par share price is mainly on its steady business growth, suitable with Buy Low & Hold long term strategy with protection by parent stocks of UOB and UOL.

There are 37 Healthcare Stocks in Singapore including Haw Par (investor has to focus only on giant stocks for investing):

Accrelist Ltd (SGX: QZG), Alliance Healthcare (SGX: MIJ), Aoxin Q & M Dental (SGX: 1D4), Asia Vets Holdings (SGX: 5RE), AsiaMedic (SGX: 505), Asian Healthcare Specialists (SGX: 1J3), Beverly JCG (SGX: VFP), Biolidics (SGX: 8YY), Cordlife (SGX: P8A), First Reit (SGX: AW9U), Haw Par Corporation (SGX: H02), HC Surgical Specialists (SGX: 1B1), Healthway Medical Corporation (SGX: 5NG), Hyphens Pharma International (SGX: 1J5), IHH Healthcare (SGX: Q0F), ISEC Healthcare (SGX: 40T), IX Biopharma (SGX: 42C), Lonza Group (SGX: O6Z), Medinex (SGX: OTX), Medtecs International Corporation (SGX: 546), OUE Lippo Healthcare (SGX: 5WA), ParkwayLife Reit (SGX: C2PU), Pharmesis International (SGX: BFK), Q&M Dental Group (SGX: QC7), QT Vascular (SGX: 5I0), Raffles Medical Group (SGX: BSL), RHT Health Trust (SGX: RF1U), Riverstone Holdings (SGX: AP4), SingMedical Group (SGX: 5OT), Suntar Eco-City (SGX: BKZ), TalkMed (SGX: 5G3), Thomson Medical Group (SGX: A50), Tianjin Zhong Xin Pharmaceutical Group (SGX: T14), Top Glove Corporation (SGX: BVA), Trendlines Group (SGX: 42T), UG Healthcare Corporation (SGX: 41A), Vicplas International (SGX: 569).

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There are over 1500 giant stocks in the world based on Dr Tee criteria, choice of 10 Dream Team giant stocks have to align with one’s unique personality, eg. for shorter term trading (eg. momentum or swing trading) or longer term investing (cyclic investing, undervalue investing or growth investing). Readers should not just “copy and paste” any stock (What to Buy, When to Buy/Sell) as successful action taking requires deeper consideration (LOFTP strategies – Level / Optimism / Fundamental / Technical / Personal Analysis) which you could learn further from Dr Tee Free 4-hr Webinar.

Drop by Dr Tee free 4hr webinar (learning at comfort of home with Zoom) to learn how to position in global giant stocks during COVID-19 stock crisis with 10 unique stock investing strategies, knowing What to Buy, When to Buy/Sell.

Zoom will be started 30 min before event, bonus talk (Q&A on any investment topics from readers) for early birds. There are many topics we will cover in this 4hr webinar, Dr Tee can have more time for Q&A if you could stay later after the webinar, you could ask on any global and local stocks including but not limited to 30 STI component stocks:

Ascendas Reit (SGX: A17U), CapitaLand (SGX: C31), CapitaLand Integrated Commercial Trust (SGX: C38U), City Development (SGX: C09), ComfortDelGro (SGX: C52), Dairy Farm International (SGX: D01), DBS Bank (SGX: D05), Genting Singapore (SGX: G13), Hongkong Land (SGX: H78), Jardine Cycle & Carriage (SGX: C07), Jardine Matheson Holdings JMH (SGX: J36), Jardine Strategic Holdings JSH (SGX: J37), Keppel Corp (SGX: BN4), Keppel DC Reit (SGX: AJBU), Mapletree Commercial Trust (SGX: N2IU), Mapletree Industrial Trust (SGX: ME8U), Mapletree Logistics Trust (SGX: M44U), OCBC Bank (SGX: O39), SATS (SGX: S58), Sembcorp Industries (SGX: U96), Singapore Airlines (SGX: C6L), Singapore Exchange (SGX: S68), Singtel (SGX: Z74), ST Engineering (SGX: S63), Thai Beverage (SGX: Y92), UOB Bank (SGX: U11), UOL (SGX: U14), Venture Corporation (SGX: V03), Wilmar International (SGX: F34), YZJ Shipbldg SGD (SGX: BS6).

Dr Tee will cover over 20 case studies, Singapore giant stocks, eg. CapitaLand Mall Trust (SGX: C38U), Singapore Exchange (SGX: S68), Keppel Corp (SGX: BN4), Top Glove (SGX: BVA), Jardine Matheson Holdings JMH (SGX: J36), Vicom (SGX: WJP) and many others, Malaysia giant stocks, Hong Kong giant stocks and US giant stocks, both long term investing and short term trading.

There are limited tickets left for this 4hr free webinar, please ensure 100% you could join when register: www.ein55.com

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4 Global Bank Stocks with Vaccine after Phase 3 COVID-19 (苦尽甘来)

Vaccination is started globally and Singapore will enter Phase 3, bringing hope to end COVID-19 pandemic, as well as light at the end of tunnel for global bank stocks in crisis to recover with great discounted prices.

In this article, you will learn from Dr Tee on 4 Global Giant Bank Stocks of 4 Countries for longer term investing and / or short term trading with COVID-19 recovery stock rally. Bonus for readers who could read every words of the entire article, learning unique strategy to position in each giant bank stocks and also generalized strategy for all bank stocks.

1) Singapore Giant Bank Stock: OCBC Bank (SGX: O39)

2) Malaysia Giant Bank Stock: Public Bank (Bursa: 1295)

3) US Giant Bank Stock: Wells Fargo Bank (NYSE: WFC)

4) HK / China Giant Bank Stock: ICBC Bank (HKEX: 1398)

During COVID-19 pandemic, most bank stocks suffer in businesses mainly due to higher NPL (Non-Performing Loan) and very low interest rate. As a result, many global bank stocks prices are significantly corrected to low optimism level.  However, “Buy Low” may not able to “Sell High” in future if a bank business is affected permanently.

Therefore, it is crucial to focus only on giant bank stocks for market cycle investing during COVID-19 stock crisis with Buy Low Sell High strategy.  In general, most bank stocks would follow the global stock markets to recover in share prices, especially with improvement in bank businesses and stronger global economy after vaccination is implemented in most countries, allowing life back to normal as before COVID-19.

A giant stock may not need to be big in size, even a small company could be a giant stock. Let’s study 4 giant bank stocks (following Dr Tee criteria) recovering from low optimism in 4 stock exchanges interested by readers:

1) Singapore Giant Bank Stock: OCBC Bank (SGX: O39)

OCBC Bank is the second largest bank in Singapore, businesses during pandemic and share prices in short term (V-shape recovery) are generally aligned with DBS Bank and UOB Bank.  These Top 3 largest Singapore banks have to set aside provisions to prepare for higher default and NPL.  Singapore MAS also requires the local banks to limit the dividend distributions to 60% of last financial year. This has resulted OCBC Bank stock prices to fall by about 40% during COVID-19 pandemic.

There are 30 Banking & Finance Stocks in Singapore including OCBC Bank (investor has to focus only on giant stocks for investing):

AMTD IB OV (SGX: HKB), B&M Hldg (SGX: CJN), DBS Bank (SGX: D05), Edition (SGX: 5HG), G K Goh (SGX: G41), Global Investment (SGX: B73), Great Eastern (SGX: G07), Hong Leong Finance (SGX: S41), Hotung Investment (SGX: BLS), IFAST Corporation (SGX: AIY), IFS Capital (SGX: I49), Intraco (SGX: I06), Maxi-Cash Finance (SGX: 5UF), MoneyMax Finance (SGX: 5WJ), Net Pacific Finance (SGX: 5QY), OCBC Bank (SGX: O39), Pacific Century (SGX: P15), Prudential USD (SGX: K6S), Singapore Exchange (SGX: S68), SHS (SGX: 566), Sing Investments & Finance (SGX: S35), Singapore Reinsurance (SGX: S49), Singapura Finance (SGX: S23), TIH (SGX: T55), Uni-Asia Group (SGX: CHJ), UOB Bank (SGX: U11), UOB-KAY HIAN HOLDINGS (SGX: U10), UOI (SGX: U13), ValueMax (SGX: T6I), Vibrant Group (SGX: BIP).

The uniqueness of OCBC is the optimism level (34%) is relatively lower than DBS and UOB, therefore having more upside potential in medium term when COVID-19 fear is fading with global vaccination and also entering of Phase-3 COVID-19 measures in Singapore, allowing stronger growth in local economy which needs banks services. While waiting for recovery of share prices to fair value, OCBC stock investors could enjoy bonus with 3+% dividend yield (6% if there is no MAS limitation), much higher than bank interest rate less than 0.5%.

Many investors “play safe” during stock crisis by keeping the money as cash deposits in banks, providing nearly free loan for banks to expand business and multiply wealth.  A smart investor would carefully select a portfolio of giant stocks (including banks) to leverage on strong business fundamental to grow in share prices.

2) Malaysia Giant Bank Stock: Public Bank (Bursa: 1295)

Public Bank is the third largest bank in Malaysia, businesses during pandemic and share prices in short term (V-shape recovery) are generally aligned with other 34 Banking & Finance Stocks in Malaysia (investor has to focus only on giant stocks for investing):

AFFIN (Bursa: 5185), ABMB (Bursa: 2488), ALLIANZ (Bursa: 1163), AMBANK (Bursa: 1015), APEX (Bursa: 5088), BIMB (Bursa: 5258), BURSA (Bursa: 1818), CIMB (Bursa: 1023), ECM (Bursa: 2143), ELKDESA (Bursa: 5228), FINTEC (Bursa: 0150), HLBANK (Bursa: 5819), HLCAP (Bursa: 5274), HLFG (Bursa: 1082), INSAS (Bursa: 3379), JOHAN (Bursa: 3441), KENANGA (Bursa: 6483), KUCHAI (Bursa: 2186), LPI (Bursa: 8621), MAA (Bursa: 1198), MAYBANK (Bursa: 1155), MBSB (Bursa: 1171), MANULFE (Bursa: 1058), MNRB (Bursa: 6459), MPHBCAP (Bursa: 5237), OSKVI (Bursa: 0053), P&O (Bursa: 6009), PBBANK (Bursa: 1295), RCECAP (Bursa: 9296), RHBBANK (Bursa: 1066), TAKAFUL (Bursa: 6139), TA (Bursa: 4898), TUNEPRO (Bursa: 5230).

Major Banks in Malaysia (Public Bank, Maybank, CIMB Bank, RHB Bank, Hong Leong Bank, etc) have suffered triple crisis over the past few years: economy slowdown during COVID-19 pandemic, low bank interest rate and also political instability. This has resulted Public Bank stock prices to fall by nearly 50% over the past few years, a very significant discount.

The uniqueness of Public Bank is relatively lower optimism level (25%) with stronger business fundamental than other Malaysia bank stocks, therefore having more upside potential in medium term when COVID-19 fear is fading with global vaccination and also less CMCO COVID-19 measures in Malaysia, allowing stronger growth in local economy which needs banks services. While waiting for recovery of share prices to fair value, Public Bank stock investors could enjoy bonus with 2% dividend yield, comparable with bank interest rate.

3) US Giant Bank Stock: Wells Fargo Bank (NYSE: WFC)

Wells Fargo Bank is the third largest bank in USA, businesses during pandemic and share prices in short term (V-shape recovery) are generally aligned with hundreds of Banking & Finance Stocks in US, including JP Morgan (NYSE: JPM), Bank of America (NYSE: BAC), Citi Group (NYSE: C), Blackrock (NYSE: BLK), etc.

Major Banks in US have suffered correction in share prices due to US lockdown in Q2/2020 pandemic and fear of COVID-19 pandemic. This has resulted Wells Fargo Bank stock prices to fall over 50% over the past few years, a very significant discount.

The uniqueness of Wells Fargo is lower optimism level (25%) than the peers but this is the result of weaker businesses in the last few quarters of pandemic. Therefore, Wells Fargo is more suitable for crisis investing, having more upside potential in medium term when COVID-19 fear is fading with global vaccination and also more QE (Quantitative Easing) in US after Joe Biden officially becomes US President on 20 Jan 2021, allowing stronger growth in local economy which needs banks services. While waiting for recovery of share prices to fair value, Wells Fargo Bank stock investors could enjoy bonus with 5+% dividend yield, much higher than the Fed ultra-low interest rate of 0-0.25%. 

Since Wells Fargo Bank has relatively weaker business fundamental (despite large in business size), diversification is required for crisis investing in this marginal giant bank stock. In fact, there are other much smaller but stronger fundamental bank stocks in US with similar low optimism level as Wells Fargo Bank but much safer for investing in longer term.  A smart investor may consider those state (not national) bank giant stocks, having even more upside potential but mostly are undervalue as they are less well known internationally.

4) HK / China Giant Bank Stock: ICBC Bank (HKEX: 1398)

ICBC Bank is the largest bank in China and the world, businesses during pandemic and share prices in short term (V-shape recovery) are generally aligned with other 14 major bank stocks / H-Shares in Hong Kong (investor has to focus only on giant stocks for investing):

Bank of China Hong Kong (HKEX: 2388), Hang Seng Bank (HKEX: 11), China Construction Bank (HKEX: 939), CM Bank (HKEX: 3968), Chong Hing Bank (HKEX: 1111), Bank of East Asia (HKEX: 23), Bank of Communication (HKEX: 3328), Dahsing Banking (HKEX: 2356), ICBC Bank (HKEX: 1398), Citic Bank (HKEX: 998), Bank of China (HKEX: 3988), Minsheng Bank (HKEX: 1988), HSBC Bank (HKEX: 5), Stanchart Bank (HKEX: 2888).

Major Banks in Hong Kong / China have suffered correction in share prices due to US-China trade war, China lockdown in Q1/2020 pandemic and global fear of COVID-19 pandemic. This has resulted ICBC Bank stock prices to fall nearly 50% over the past few years, a very significant discount.

The uniqueness of ICBC is recovering from lower optimism level (39%), more cyclical than the peers in medium term (every few years) with stable business businesses. Therefore, ICBC is more suitable for cyclic investing, having more upside potential in medium term when COVID-19 fear is fading with global vaccination and also less tension in US-China trade war after Joe Biden officially becomes US President on 20 Jan 2021, allowing stronger growth in local economy which needs banks services. While waiting for recovery of share prices to fair value, ICBC Bank stock investors could enjoy bonus with 6% dividend yield, much higher than current very low interest rates in Hong Kong banks.

There are other giant stocks in Hong Kong / China which are stronger and lower optimism than ICBC Bank, despite smaller in size. In fact, the largest local bank in Hong Kong is HSBC Bank but it is a poor bank stock (non-giant stock with weak fundamental).  A smart investor would only consider giant bank stocks, not buying any other bank stocks at historical low prices (a common mistake for beginner investors to buy at “cheap” prices without considering the declining value in businesses), having even more upside potential with much lower risk. Risk management with a portfolio of giant stocks is key for crisis investing, so that “Buy Low” would have higher chance of “Sell High” in future.

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There are over 1500 giant stocks in the world based on Dr Tee criteria, choice of 10 Dream Team giant stocks have to align with one’s unique personality, eg. for shorter term trading (eg. momentum or swing trading) or longer term investing (cyclic investing, undervalue investing or growth investing). Readers should not just “copy and paste” any stock (What to Buy, When to Buy/Sell) as successful action taking requires deeper consideration (LOFTP strategies – Level / Optimism / Fundamental / Technical / Personal Analysis) which you could learn further from Dr Tee Free 4-hr Webinar.

Drop by Dr Tee free 4hr webinar (learning at comfort of home with Zoom) to learn how to position in global giant stocks during COVID-19 stock crisis with 10 unique stock investing strategies, knowing What to Buy, When to Buy/Sell.

Zoom will be started 30 min before event, bonus talk (Q&A on any investment topics from readers) for early birds. There are many topics we will cover in this 4hr webinar, Dr Tee can have more time for Q&A if you could stay later after the webinar, you could ask on any global and local stocks including but not limited to 30 STI component stocks:

Ascendas Reit (SGX: A17U), CapitaLand (SGX: C31), CapitaLand Integrated Commercial Trust (SGX: C38U), City Development (SGX: C09), ComfortDelGro (SGX: C52), Dairy Farm International (SGX: D01), DBS Bank (SGX: D05), Genting Singapore (SGX: G13), Hongkong Land (SGX: H78), Jardine Cycle & Carriage (SGX: C07), Jardine Matheson Holdings JMH (SGX: J36), Jardine Strategic Holdings JSH (SGX: J37), Keppel Corp (SGX: BN4), Keppel DC Reit (SGX: AJBU), Mapletree Commercial Trust (SGX: N2IU), Mapletree Industrial Trust (SGX: ME8U), Mapletree Logistics Trust (SGX: M44U), OCBC Bank (SGX: O39), SATS (SGX: S58), Sembcorp Industries (SGX: U96), Singapore Airlines (SGX: C6L), Singapore Exchange (SGX: S68), Singtel (SGX: Z74), ST Engineering (SGX: S63), Thai Beverage (SGX: Y92), UOB Bank (SGX: U11), UOL (SGX: U14), Venture Corporation (SGX: V03), Wilmar International (SGX: F34), YZJ Shipbldg SGD (SGX: BS6).

Dr Tee will cover over 20 case studies, Singapore giant stocks, eg. CapitaLand Mall Trust (SGX: C38U), Singapore Exchange (SGX: S68), Keppel Corp (SGX: BN4), Top Glove (SGX: BVA), Jardine Matheson Holdings JMH (SGX: J36), Vicom (SGX: WJP) and many others, Malaysia giant stocks, Hong Kong giant stocks and US giant stocks, both long term investing and short term trading.

There are limited tickets left for this 4hr free webinar, please ensure 100% you could join when register: www.ein55.com

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Singapore and Malaysia National Giant Stocks (国庆财股)

Singapore Stocks DBS OCBC Singtel UOB

Both Singapore and Malaysia celebrate National Day in the month of August. It is timely to share the 4 National Giant Stocks in each country which preserve the national wealth. Learn from Dr Tee on how to position these stocks during COVID-19 stock crisis.

4 Singapore National Stocks:

1) DBS (SGX: D05)

2) Singtel (SGX: Z74)

3) OCBC (SGX: O39)

4) UOB (SGX: U11)

4 Malaysia National Stocks:

1) Maybank (Bursa: 1155)

2) Top Glove (Bursa: 7113) / (SGX: BVA)

3) Hartalega (Bursa: 5168)

4) Public Bank (Bursa: 1295)

Stock market is a hidden way to preserve and grow the national wealth. For Singapore SGX, there are 30 large cap stocks in STI Index (^STI), which can be sorted below by size of market cap (share price x number of shares) with ROE (Return on Equity):

No       Name  / Market Cap(M) (ROE, %)

1          DBS Bank (SGX: D05) 52304 (12.3)

2          Singtel (SGX: Z74) 38761 (4.0)

3          OCBC Bank (SGX: O39) 38413 (10.3)

4          UOB Bank (SGX: U11) 32687 (11.0)

5          Wilmar International (SGX: F34) 30509 (7.7)

6          Jardine Matheson Holdings JMH (SGX: J36)  29865 (9.4)

7          Jardine Strategic Holdings JSH (SGX: J37)   22731 ( 6.1)

8          Thai Beverage (SGX: Y92) 15195 (20.1)

9          CapitaLand (SGX: C31) 13844 (8.8)

10        Ascendas Reit (SGX: A17U) 12489 (4.8)

11        Singapore Airlines (SGX: C6L) 10346 (-0.1)

12        ST Engineering (SGX: S63) 10042 (26.0)

13        Keppel Corp (SGX: BN4) 9830 (6.3)

14        Singapore Exchange (SGX: S68) 9236 (37.9)

15        Hongkong Land USD (SGX: H78) 8635 (0.5)

16        Genting Singapore (SGX: G13) 8204 (8.5)

17        Mapletree Logistics Trust (SGX: M44U) 8027 (8.2)

18        Jardine Cycle & Carriage (SGX: C07) 7659 (12.8)

19        Mapletree Industrial Trust (SGX: ME8U) 7490 (10.3)

20        City Development (SGX: C09) 7463 (5.2)

21        CapitaLand Mall Trust (SGX: C38U) 6937 (9.0)

22        CapitaLand Commercial Trust (SGX: C61U) 6294 (6.0)

23        Mapletree Commercial Trust (SGX: N2IU) 6130 (9.4)

24        Dairy Farm International (SGX: D01) 5897 (26.8)

25        UOL (SGX: U14) 5491 (4.8)

26        Venture Corporation (SGX: V03) 5449 (14.5)

27        YZJ Shipbldg SGD (SGX: BS6) 3801 (10.0)

28        Sembcorp Industries (SGX: U96) 3394 (3.1)

29        SATS (SGX: S58) 3017 (10.4)

30        ComfortDelGro (SGX: C52) 2990 (10.2)

It is clear that the Top 4 stocks with the largest market cap in Singapore are DBS (SGX: D05), Singtel (SGX: Z74), OCBC (SGX: O39) and UOB (SGX: U11). Company size may not be the right criteria of a giant stock, therefore an investor has to monitor business fundamental changes (especially during COVID-19 pandemic), eg with ROE and other indicators.

For 30 STI stocks, only Singapore Airlines, SIA (SGX: C6L) records losses in last financial year. For 30 STI stocks, COVID-19 has different degrees of impact on near future business.  There is also on-going crisis, eg. low optimism crude oil price which affects the Oil & Gas sector, including Keppel Corp (SGX: BN4) and Sembcorp Industries (SGX: U96), which may take longer time to recover with strong support of sponsor, Temasek.

3 major bank stocks (DBS, OCBC, UOB) in Singapore have contributed to about 1/3 of Singapore stock market. Bank stocks are sensitive to interest rate changes, therefore current low interest rates globally (driven by nearly 0% interest rate by the Fed of US) have reduced the Net Interest Margin (NIM), resulting in lower interest related income. At the same time, Non-Performing Loan (NPL) is increasing during COVID-19, banks have to increase more provision funds to prepare for possible default in loan payment of some countries, including Oil & Gas sector (eg. Hin Leong which has high debt to 3 major banks).  As a result, it is not surprised to see bank stocks report poorer quarterly results for Q1 and Q2 / 2020.

MAS has requested 3 major banks in Singapore to cap the dividend payment for FY2020 to maximum of 60% of FY2019. This implies for an average dividend yield of 6%, an investor may only receive 6 x 0.6 = 3.6% for the next 1 year. As a result, 3 major bank stocks were under significant price correction recently (which also affect performance of STI). However, a long term bank stock investor should not consider dividend payment as a criteria to decide on investing. In fact, the share price correction of over 3% in 1 week has compensated for the “loss” of dividend (which is kept as retained earnings in balance sheet, a form of saving for investor, similar to many REITs in Q1 and Q2 / 2020 to preserve cash).

Here is a list of 30 Banking & Finance stocks in Singapore, an investor may focus on 3 major bank stocks:
AMTD IB OV (SGX: HKB), B&M Hldg (SGX: CJN), DBS Bank (SGX: D05), Edition (SGX: 5HG), G K Goh (SGX: G41), Global Investment (SGX: B73), Great Eastern (SGX: G07), Hong Leong Finance (SGX: S41), Hotung Investment (SGX: BLS), IFAST Corporation (SGX: AIY), IFS Capital (SGX: I49), Intraco (SGX: I06), Maxi-Cash Finance (SGX: 5UF), MoneyMax Finance (SGX: 5WJ), Net Pacific Finance (SGX: 5QY), OCBC Bank (SGX: O39), Pacific Century (SGX: P15), Prudential USD (SGX: K6S), Singapore Exchange (SGX: S68), SHS (SGX: 566), Sing Investments & Finance (SGX: S35), Singapore Reinsurance (SGX: S49), Singapura Finance (SGX: S23), TIH (SGX: T55), Uni-Asia Group (SGX: CHJ), UOB Bank (SGX: U11), UOB-KAY HIAN HOLDINGS (SGX: U10), UOI (SGX: U13), ValueMax (SGX: T6I), Vibrant Group (SGX: BIP).

Singtel is also a crisis giant stock in bearish Telco sector (started a few years before COVID-19), an investor who “Buy Low” may get Lower in share price, gaining dividend yield (eg. 5%) but making capital loss (lower share price). Telco business is saturated, economic moat is narrow as most Telco services could be easily replaced by other competitors, therefore profit margin is lower with intense competition not only in local market but also in regional market (Singtel has over 50% revenue from overseas markets).

OCBC, UOB and Singtel are relatively at lower optimism region while DBS is at moderate optimism level. Each giant stock requires different strategy (crisis, cyclic, growth, etc) in positioning, either for short term trading or long term investing.

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Malaysia Bursa with 30 KLCI (^KLCI) stocks, top 4 giant stocks by market cap has significant changes recently. Maybank (Bursa: 1155) is still the largest but both Top Glove (Bursa: 7113) / (SGX: BVA) and Hartalega (Bursa: 5168) have surpassed Public Bank (Bursa: 1295), mainly due to speculation in stocks during COVID-19 for glove related stocks.  Top Glove has dual listing in both Malaysia Bursa and Singapore SGX, therefore the wealth of a nation could be shared by global investors, regardless of nationality.

Here is a list of 30 Malaysia Bursa KLCI Index component stocks which may be considered (investor has to focus only on giant stocks for investing):
CIMB (Bursa: 1023) CIMB GROUP HOLDINGS BERHAD, DIALOG (Bursa: 7277) DIALOG GROUP BERHAD, DIGI (Bursa: 6947) DIGI.COM BERHAD, GENM (Bursa: 4715) GENTING MALAYSIA BERHAD, GENTING (Bursa: 3182) GENTING BERHAD, HAPSENG (Bursa: 3034) HAP SENG CONSOLIDATED BERHAD, HARTA (Bursa: 5168) HARTALEGA HOLDINGS BERHAD, HLBANK (Bursa: 5819) HONG LEONG BANK BERHAD, HLFG (Bursa: 1082) HONG LEONG FINANCIAL GROUP BERHAD, IHH (Bursa: 5225) IHH HEALTHCARE BERHAD, IOICORP (1961) IOI CORPORATION BERHAD, KLCC (Bursa: 5235SS) KLCC PROPERTY HOLDINGS BERHAD, KLK (Bursa: 2445) KUALA LUMPUR KEPONG BERHAD, MAXIS (Bursa: 6012) MAXIS BERHAD, MAYBANK (Bursa: 1155) MALAYAN BANKING BERHAD, MISC (Bursa: 3816) MISC BERHAD, NESTLE (Bursa: 4707) NESTLE MALAYSIA BERHAD, PBBANK (Bursa: 1295) PUBLIC BANK BERHAD, PCHEM (Bursa: 5183) PETRONAS CHEMICALS GROUP BERHAD, PETDAG (Bursa: 5681) PETRONAS DAGANGAN BHD, PETGAS (Bursa: 6033) PETRONAS GAS BERHAD, PMETAL (Bursa: 8869) PRESS METAL ALUMINIUM HOLDINGS BERHAD, PPB (Bursa: 4065) PPB GROUP BERHAD, RHBBANK (Bursa: 1066) RHB BANK BERHAD, SIME (Bursa: 4197) SIME DARBY BERHAD, SIMEPLT (Bursa: 5285) SIME DARBY PLANTATION BERHAD, TENAGA (Bursa: 5347) TENAGA NASIONAL BHD, TM (Bursa: 4863) TELEKOM MALAYSIA BERHAD, TOPGLOV (Bursa: 7113) TOP GLOVE CORPORATION BHD.

Strong fundamental stocks (eg. glove business) with market greed usually result in market speculation or bubble.  Each positive news would be used as a reason to buy high for share prices. Despite strong business fundamental, glove stocks are more suitable for short term trading with trend-following strategies, Buy High Sell Higher.  However, due to relative high optimism level, each unexpected correction may incur high losses if a trader does not have a trading plan with S.E.T. (Stop Loss, Entry, Target) prices.

Maybank and Public Bank are aligned with Singapore and global banks at relatively lower optimism levels. Bank stocks are cyclic in nature, therefore investing in national banks (usually supported by local government) during global financial crisis would have higher chances of success for longer term investors who could overcome the market fear, investing with progressive entries of capital (eg. 10 x 10%, 5 x 20%, 2 x 50%, etc). Saving in banks would receive less than 1% return in interest but investing in giant bank stocks could receive over 100% return over a market cycle.

Each country or region has its own national blue chip stock. For example, TSMC (NYSE: TSM) contributed to 1/3 of Taiwan TSEC Stock Index (^TWII). With bullish semiconductor / 5G stocks, TSMC has doubled its share price in 6 months, contributing to higher index value of Taiwan stock market.  TSMC has monopoly of 5 nanometer technology in wafer fab, a crucial pillar for emerging 5G Telco business over the next 10 years.

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Dilemma of investors for global growth stocks (eg. technology, glove, healthcare, etc) are share prices are not cheap when market is not fearful. Therefore, crisis is always an opportunity, especially when a stock price drops significantly during an unexpected crisis (eg. COVID-19 pandemic) but business fundamental is not much affected or even growing.

Drop by Dr Tee free 4hr webinar to learn how to position in global giant stocks during COVID-19 stock crisis with 10 unique stock investing strategies, knowing What to Buy, When to Buy/Sell.

This is the first time, 4hr bonus investment course by Dr Tee is conducted through Webinar (learning at comfort of home with Zoom), a rare opportunity to learn remotely, profiting from Covid-19 stock crisis.

Zoom will be started 30 min before event, bonus talk (Q&A on any investment topics from readers) for early birds. There are many topics we will cover in this 4hr webinar, Dr Tee can have more time for Q&A if you could stay later after the webinar.

Dr Tee will cover over 20 case studies, Singapore giant stocks, eg. CapitaLand Mall Trust (SGX: C38U), Singapore Exchange (SGX: S68), Keppel Corp (SGX: BN4), Top Glove (SGX: BVA), Jardine Matheson Holdings JMH (SGX: J36), Vicom (SGX: WJP) and many others, Malaysia giant stocks, Hong Kong giant stocks and US giant stocks, both long term investing and short term trading.

There are limited tickets left for this 4hr free webinar, please ensure 100% you could join when register: www.ein55.com

Stock Market Updates with Bank Stocks and REITs

Dr Tee Stock Investment Webinar

Global stock markets (S&P500, STI, KLCI, HSI, SSEC, etc) have been bumpy over the past few months. US Covid-19 condition is still critical, affecting the confidence of V-shape recovery of stock market, as well as the coming US presidential election in Nov 2020. Some investors worry of possible double dip, dare not take any action now. Crisis is always opportunity but an investor has to apply the right stock investing strategy.

At the same time, Singapore stock market is lagging, major bank stocks, DBS Bank (SGX: D05), OCBC Bank (SGX: O39), UOB Bank (SGX: U11) are under correction after MAS guidelines to cap the dividend payment of banks to 60% of last year (implying if dividend yield is 6%, would become 6×0.6 = 3.6%), disappointing many passive income investors. However, the impact is temporary, earnings of banks won’t be affected (stability is enhanced with more cash in reserve), the shareholders money are kept within the company first. Bank stocks are cyclic in nature, alignment with market cycle is crucial to maximize the potential gain.

This is similar to REITs withhold some dividends in Q1-Q2 / 2020 to preserve cash during the uncertain pandemic period, eg. CapitaLand Mall Trust (SGX: C38U), Frasers Centrepoint Trust (SGX: J69U), etc. Strong REIT such as First Reit (SGX: AW9U) has fallen to about 1/3 of peak share with price-to-book ratio nearly at 50% discount, mainly due to rental relief to tenant who is also weak sponsor (Lippo Karawaci) which may cut future dividend by half (new agreements with Rupiah exchange rate depreciating by 50%). Crisis is a good time to collect giant dividend stocks but certain risks should not be overlooked.

There are 30 STI index component stocks including most of giant stocks mentioned above (investor has to focus only on giant stocks for investing):
DBS Bank (SGX: D05), Singtel (SGX: Z74), OCBC Bank (SGX: O39), UOB Bank (SGX: U11), Wilmar International (SGX: F34), Jardine Matheson Holdings JMH (SGX: J36), Jardine Strategic Holdings JSH (SGX: J37), Thai Beverage (SGX: Y92), CapitaLand (SGX: C31), Ascendas Reit (SGX: A17U), Singapore Airlines (SGX: C6L), ST Engineering (SGX: S63), Keppel Corp (SGX: BN4), Singapore Exchange (SGX: S68), Hongkong Land (SGX: H78), Genting Singapore (SGX: G13), Mapletree Logistics Trust (SGX: M44U), Jardine Cycle & Carriage (SGX: C07), Mapletree Industrial Trust (SGX: ME8U), City Development (SGX: C09), CapitaLand Mall Trust (SGX: C38U), CapitaLand Commercial Trust (SGX: C61U), Mapletree Commercial Trust (SGX: N2IU), Dairy Farm International (SGX: D01), UOL (SGX: U14), Venture Corporation (SGX: V03), YZJ Shipbldg SGD (SGX: BS6), Sembcorp Industries (SGX: U96), SATS (SGX: S58), ComfortDelGro (SGX: C52).

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Dr Tee has been very busy since Phase 2 is started, conducting many investment courses, therefore not able to update as frequent as last time (about 200 articles written during past 5 months of Covid-19 pandemic: www.ein55.com/blog)

I start to conduct some online courses which are proven to be effective, especially some students are still not comfortable to meet-up during pandemic. Personally I prefer meet-up workshop as it is more interactive in learning. However, I start to master different ways to engage the students in webinar setting.

This is the first time, 4hr bonus investment course by Dr Tee is conducted through Webinar (learning at comfort of home with Zoom), a rare opportunity to learn remotely, profiting from Covid-19 stock crisis.

Zoom will be started 30 min before event, bonus talk (Q&A on any investment topics from readers) for early birds. There are many topics we will cover in this 4hr webinar, Dr Tee can have more time for Q&A if you could stay later after the webinar.

Dr Tee will cover over 20 case studies, Singapore giant stocks, eg. CapitaLand Mall Trust (SGX: C38U), Singapore Exchange (SGX: S68), Keppel Corp (SGX: BN4), Top Glove (SGX: BVA), Jardine Matheson Holdings JMH (SGX: J36), Vicom (SGX: WJP) and many others, Malaysia giant stocks, Hong Kong giant stocks and US giant stocks, both long term investing and short term trading.

There are limited tickets left for this 4hr free webinar, please ensure 100% you could join when register: www.ein55.com

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